Question
Answer in Excel format please The price of stock is 112.825%. It has 4.26% coupon rate billed twice a year, Issued six years ago. The
Answer in Excel format please
The price of stock is 112.825%. It has 4.26% coupon rate billed twice a year, Issued six years ago. The maturity rate occurred 22 years previously. What is the YTM of the stock, as well as it's corresponding EAR? Will the stock actually earn the YTM or not? Another company issues a bond with the same details. HOWEVER, it was issued two years before the previous stock. If both stocks fall by 50 points, which stock is better? A conversion option is available. Would the YTM remain the same or if not would it be greater or lesser?
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