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a) Radoski Corporation's bonds make an annual coupon interest payment of 8.55% every year. The bonds have a par value of $1,000, a current price

a) Radoski Corporation's bonds make an annual coupon interest payment of 8.55% every year. The bonds have a par value of $1,000, a current price of $920, and mature in 12 years. What is the yield to maturity on these bonds?

a.

6.88%

b.

8.39%

c.

7.30%

d.

9.71%

e.

10.06%

b) Goode Inc.'s stock has a required rate of return of 8.50%, and it sells for $29.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D 0?

a.

$1.28

b.

$1.55

c.

$0.41

d.

$0.83

e.

$0.28

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