Question
A) FV = $100 Price = $102.70 Coupon Rate = 6.5% Term =3 years Given the information above calculate the yield to maturity (YTM). Calculate
A) FV = $100
Price = $102.70
Coupon Rate = 6.5%
Term =3 years
Given the information above calculate the yield to maturity (YTM). Calculate as a percentage correct to two decimal places. Do not enter the percentage (%) sign.v
B)When Polycorp issued its debentures three years ago, they had six years remaining to maturity. Using the following information, calculate the price of the debentures today.
Face value = $100
Coupon Rate = 0.08
Yield = 0.08
C)Fab Co has just paid a dividend of $1. The company pays dividends annually. Dividends are expected to grow at 12% pa for the next two years and for 3% thereafter for the foreseeable future. How much will the dividend be at the end of the fifth year? Answer to the nearest cent, e.g $5.678 should be entered as 5.68. Do not enter the $ sign.
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