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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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