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Assume that you are considering the purchase of a 10-year bond with a coupon rate of 10%. The bond has a par value of $1,000
Assume that you are considering the purchase of a 10-year bond with a coupon rate of 10%. The bond has a par value of $1,000 and makes semiannual interest payments. The bond sells for $894.50, and can be called in 4 years for $1100. What is the yield to call of this bond? 12.85% O 11.49% O 13.77% O 11.83% O 15.54% The expected return on some company's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Which of the following statements is CORRECT? The stock price is expected to be $48 a share one year from now. The stock's dividend yield is 7%. The stock price is expected to be $50 a share one year from now. O The stock's dividend yield is 6%. The stock's dividend yield is 8%
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