Question
A. PT Saratoba has a bond with a par value of $15,000 that will be matured in 18 years. The bonds provide a coupon rate
A. PT Saratoba has a bond with a par value of $15,000 that will be matured in 18 years. The bonds provide a coupon rate of 7% per annum that will be paid every six months for the first 5 years, then pays $700 every six months for the next 10 years, and then pay $ 800 every six months for the last three years. If the required rate of return is 9%, what is the current price of the bond? B. PT Arsenal recently paid out dividend of $3.45 per share. The company plans to increase its dividend by 7.3% next year. If the stock selling for $47 per share, what return does this stock offer if this is correct?
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