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21. The current price of a 20-year, $1,000 par value bond is $1,158.91. Interest on this bond is paid every six months, and the current
21. The current price of a 20-year, $1,000 par value bond is $1,158.91. Interest on this bond is paid every six months, and the current yield to maturity on this bond 13.4 percent. Given these facts, what is the annual coupon rate on this bond? 22. Compute the price of a company's stock that just paid a dividend of $3.25 (that is, Do = 3.25), assuming that the growth rate in dividends is expected to be 5.5% per year forever and that the required rate of return on this stock is 16.5%
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