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Jose owns investment A and 1 bond B . The total value of his holdings is $ 3 , 0 4 0 . 0 0
Jose owns investment A and bond B The total value of his holdings is $ Bond B has a coupon rate of percent, par value of $ YTM of percent, years until maturity, and semiannual coupons with the next coupon due in months. Investment A is expected to produce cash flows forever. The next cash flow is expected to be $ in year, and subsequent annual cash flows are expected to increase by g each year forever. The expected return for investment A is percent. What is g the annual growth rate for the annual cash flows paid by investment A
plus or minus bps
plus or minus bps
plus or minus bps
plus or minus bps
none of the answers are within bps of the correct answer
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