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e. Company C is expected to pay a dividend of 5 next year. Then, dividend growth is expected to be 20% a year for five

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e. Company C is expected to pay a dividend of 5 next year. Then, dividend growth is expected to be 20% a year for five years (i.e., until year 6) and zero thereafter. What is the market price of company C? (6 marks) 1. Consider a bond with a face value of 100, 5 years to maturity and a coupon rate of 6%, paid annually. i. Identify and explain the factors that affect the price of this bond. (6 marks) Assuming bonds of similar risk in this market are currently offering a yield of 4%, calculate the price of the bond. il e. Company C is expected to pay a dividend of 5 next year. Then, dividend growth is expected to be 20% a year for five years (i.e., until year 6) and zero thereafter. What is the market price of company C? (6 marks) 1. Consider a bond with a face value of 100, 5 years to maturity and a coupon rate of 6%, paid annually. i. Identify and explain the factors that affect the price of this bond. (6 marks) Assuming bonds of similar risk in this market are currently offering a yield of 4%, calculate the price of the bond. il

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