Question
A) If duration of a bond is 3.87 years and the current yield in the market is 2.5% what is the modified duration of this
A) If duration of a bond is 3.87 years and the current yield in the market is 2.5% what is the modified duration of this bond? (use 5 decimal places)
B) Value a firms share price if the firm is expected to have earnings per share of $3.50 next year and the firm has a plowback ratio of 25%. Assume the firm has dividend growth rate of 2% and the firms required rate of return is 9%.
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Introduction To Corporate Finance
Authors: William L. Megginson, M.D. Lucey Brian C., Scott J. Smart, Scott B. Smart, Bill Megginson
1st Edition
184480562X, 9781844805624
