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David has one share of stock and one bond. The total value of the two securities is $ 1 , 0 5 1 . 8
David has one share of stock and one bond. The total value of the two securities is $ The bond has a YTM of percent, a coupon rate of percent, and a face value of $; pays semiannual coupons with the next one expected in months, and matures in years. The stock pays annual dividends that are expected to grow by percent per year forever. The next dividend is expected to be $ and paid in one year. What is the expected return for the stock?
plus or minus percentage points
plus or minus percentage points
plus or minus percentage points
plus or minus percentage points
None of the above is within percentage points of the correct answer
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