Question
I just need the answers here no explaination. Q4 a) A 12 year bond pays an annual coupon of 6.5%, if the discount rate is
I just need the answers here no explaination.
Q4
a)
A 12 year bond pays an annual coupon of 6.5%, if the discount rate is 4%, what is the value of the bond?
Round up your answer to 2 decimal places.
b) Bytime Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share. If the market expects a 10% rate of return on Trend-Line, at what price must it be selling? Round up your answer to the nearest whole number.
c) A bond with a face value of $100 has 12 years until maturity, carries a coupon rate of 4.25%, and sells for $97. What is the yield to maturity on this bond, if the coupon is paid twice a year? Express your answer as a percentage rounded to 2 decimal places
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