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It is less difficult to value a bond than it is to value a stock because: Points: 1 Dividend payments on stocks are larger than

It is less difficult to value a bond than it is to value a stock because:

Points: 1

  1. Dividend payments on stocks are larger than interest payments on bonds.

  2. The life of an equity security is limited.

  3. The future dividend cash flows of a stock are known.

  4. The future coupon cash flows of a bond are known.

  5. Stay calm.

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