Question
3. A stock costs $90 and pays $ 4 annual dividend. If you expect to sell the stock after 5 years for $100, what is
3. A stock costs $90 and pays $ 4 annual dividend. If you expect to sell the stock after 5 years for $100, what is your anticipated return on the investment ?
4. A $1,000 Bond has a 4% Coupon and currently sells for $900. The bond matures after 5 years. What is the Bond's anticipated yield. Compare this return with the answer to the previous problem.
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
