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Five year ago, the 10-year bond was paying 95%. At the same time, the 5-year bond was paying just 9.3%. According to the expectation theory,
Five year ago, the 10-year bond was paying 95%. At the same time, the 5-year bond was paying just 9.3%. According to the expectation theory, what is the current 5-year rate expected by investors? KD 9.3% O none of the given answers is correct 09.5% e 9.49 9.1% 1 pts Question 16 Compute the value of a share of common stock of ABC Company whose most recent dividend was $2.50 and is expected to grow at three percent per year for the next five years, after which the dividend growth rate will increase to 6 percent per year indefinitely. Assume 10 percent required rate of return. 58.62 56.79 None of the given answers is correct 57.99 62.49
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