Question
Given the information in the table, what is the dividend yield from t=0 to t=1? Todays Dividend $3.17 Discount Rate 7.25% Growth rate in dividends
Given the information in the table, what is the dividend yield from t=0 to t=1?
| Todays Dividend | $3.17 |
| Discount Rate | 7.25% |
| Growth rate in dividends 0 to 1 | 6.14% |
| Growth rate in dividends 1 to 2 | 7.19% |
| Growth rate in dividends 2 to 3 | 8.44% |
| Growth rate in dividends 3 onward | 4.05% |
Bond A has the following features:
Face value = $1,000,
Coupon Rate = 4%,
Maturity = 10 years, Yearly coupons
The market interest rate is 4.74%
What is todays price of bond A?
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond
3rd Edition
0273713248, 9780273713241
