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Neville buys the following investments: One 10-year 100 par value bond with 6% semi-annual coupons One share of a stock that pays semi-annual dividends and

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Neville buys the following investments: One 10-year 100 par value bond with 6% semi-annual coupons One share of a stock that pays semi-annual dividends and has a long-run dividend growth rate of 2% compounded semi-annually. The next dividend of $4.50 is payable in six months. The current market yield rate is 3% compounded semi-annually. In four years the market yield rate increases to 8% compounded semi-annually. In 4 years, Neville sells both investments immediately after the coupon and dividend are paid. Calculate the price he would receive if he sells them at their market value

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