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General Electric Corporation has a $1000 par value bond paying annual interest of 7%. The bond mature will in 20 years. The current yield to

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General Electric Corporation has a $1000 par value bond paying annual interest of 7%. The bond mature will in 20 years. The current yield to maturity for this bond is 9%. a.) What is the annual coupon Payment? (2 pts) b.) What is the current price of the bond? (2 pts) c.) What will happen to the bond price if the yield to maturity increases? (2 pts) d.) Will the pare value of this bond change? _(2 pts) e.) Will the coupon rate of the bond change? (2 pts) What should be the current price of a stock if the expected dividend is $7, the stock has a required return of 20%, and a constant dividend growth rate of 8%? O a $19.23 b. $25.00 O c $35.71 d. $58.33

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