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Explain why the Standard & Poor's 500 Index might be a better measure of stock market performance than the Dow Jones Industrial Average.Compute the price
Explain why the Standard & Poor's 500 Index might be a better measure of stock market performance than the Dow Jones Industrial Average.Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 7 percent. Compute the price again if interest payments are paid semi-annually (solve using semi-annual compounding). Par value is $1000.You have just paid $1,135.90 for a bond, which has 10 years before it, matures. It pays interest every six months. If you require an 8 percent return from this bond, what is the coupon rate on this bond? Par value is $1000
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