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Debra wants to buy zero-coupon bonds as a means of saving for retirement. She finds that the current price of a zero-coupon bond with a
Debra wants to buy zero-coupon bonds as a means of saving for retirement. She finds that the current price of a zero-coupon bond with a face value of $1,000 and 25 years to maturity is $234.00. (Round answer to O decimal places, for e.g. 15.25.) (a) If she buys this bond and holds it to maturity, what annual yield to maturity will she earn before taxes? % Donald is considering purchasing some preferred stock from Ivanhoe Corp. The company pays a $10 annual dividend per share on its preferred stock, and similar risk companies are earning 8% annual returns. What should be the value of the stock per share? $8.00 $1250.00 $80.00 $125.00
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