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Both 5 & 6 Question please. 5) Both Bond X and Bond Y have 10.6 percent coupons, make semiannual payments, and are priced at par

Both 5 & 6 Question please. image text in transcribed
5) Both Bond X and Bond Y have 10.6 percent coupons, make semiannual payments, and are priced at par value Bond X has 6 years to maturity, whereas Bond Y has 23 years to maturity Both bonds have a par value of 1,000. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (10 pts) Bundx and Y N=32 N=46 I/4= 5.3 IN 25.3 Pu= 17 IM Furyoo F-2000 V 6) Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday, the firm announced the dividend will increase next year by 10 percent and will stay at that level through Year 3, after which time the dividends will increase by 2 percent annually. The required return on this stock is 12 percent. What is the current value per share? (5 pts) p =23(etg) = (-.g) 9=002 r = 0.22 0 =(1108) Y DO 1.1, 2. 4=2.641 03=2.64 13 =2-64 x (1 to 2 (0.12 - 02)=2613 P2=3 = 26.93 e R=01(at)pety = 264(2 +0. 2) = 26.95 toit = 26.93 03=2.64 /po = Dox (3+5)(2-3) = 2.9 4 (2+0.0=1123-on 5:01 E24 P

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