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Five years ago, Apex Corporation issued a 15-year bond, with a par value of $1,000 and with a coupon rate of 9.00%, payable annually. Today,
Five years ago, Apex Corporation issued a 15-year bond, with a par value of $1,000 and with a coupon rate of 9.00%, payable annually. Today, the bonds have 10 years remaining to maturity, and the yield to maturity is 12.00%. What is the price of this bond?
You want to purchase some shares of Green World Company stock, and you require a 15% rate of return to compensate you for what you perceive to be the risks. If the company pays a constant $1.80 per share dividend indefinitely, what is the current price of the stock?
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