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A stock pays a dividend of 5 after two years and that amount is expected to increase by 3% each year after that. What should
A stock pays a dividend of 5 after two years and that amount is expected to increase by 3% each year after that. What should be the price of 1 share of stock if the current market annual yield is 5%. Mr X takes a loan of 500000 for 3 years. Interest only is to be paid at the end of years 1 and 2 and at the end of year 3 the principal is repaid as well as the interest for that year. Year 1 rate is 5%, Year 2 rate is unknown and year 3 rate is unknown. But spot rates are known to be 5% for 1 year, 7% for 2 years and 7% for 3 years. Mr X wants to pay a fixed rate at the end of each year. A financial company will set this up for Mr X and Mr X will pay a fixed swap rate R each year. Find R. At the beginning of the year, a fund began with an initial deposit of 900. A deposit of 1000 was made at the end of 4 months. Withdrawals of 300 and 500 were made at the end of 6 months and 8 months, respectively. The amount in the fund at the end of the year is 1540. Calculate the dollar-weighted (money-weighted) yield rate earned by the fund during the year
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