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1 - You have a $1,000 ten year bond. It pays $95. What is the PV if current interest rates are 9.5%? What would the
1 - You have a $1,000 ten year bond. It pays $95. What is the PV if current interest rates are 9.5%? What would the PV be if the current interest rate is 11.25%?
2 - Your company has common shares of stock. This year's dividend is $3 and grows 5% annually. What's the fair value at 17% market premium?
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