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4. Baker Corp. pays a constant $1.8 dividend on its stock. The company will maintain this dividend for the next 15 years and will then

4.

Baker Corp. pays a constant $1.8 dividend on its stock. The company will maintain this dividend for the next 15 years and will then cease paying dividends forever. If the required return on this stock is 5 percent, what would the current share price be?

Group of answer choices

$12.99

$30

$18.68

$36

$27

1.

Compare the coupon rates on the following pairs of bonds assuming all else equal. A senior bond ______ a junior bond; a bond without a sinking fund ________ one with a sinking fund.

Group of answer choices

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>, <

>, >

<, >

2.

Which of the following bond has the highest interest rate risk?

15-y & 4% coupon

10-y & 6% coupon

10-y & 4% coupon

15-y & 1% coupon

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