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(a) Ashutosh and Co. has 9 percent coupon bonds on the market with five years left to maturity. The bonds make annual coupon payments. If
(a) Ashutosh and Co. has 9 percent coupon bonds on the market with five years left to maturity. The bonds make annual coupon payments. If the bond currently sells for $934, what is its YTM? (you may use trial \& error or approximate formula to solve this problem). (b) Mannapuram Cements Ltd. will pay a $3.04 per share dividend next year. The company pledges to increase its dividend by 3.8 percent per year indefinitely. If you require an 11 percent return on your investment, how much will you pay for the company's stock today
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