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O pts Question 4 Sunny buys the following investments: . A 10-year 1000 par value bond with 8% annual coupons A share of a stock

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O pts Question 4 Sunny buys the following investments: . A 10-year 1000 par value bond with 8% annual coupons A share of a stock with the next dividend of $45.70 payable one year from now and a long-run dividend growth rate of 2.5% The current market yield rate is 8%. The market yield rate decreases to 5% in four years. Sunny sells both investments at their market value in 4 years. Ignoring received coupons and dividends, what is her annual effective yield for both investments combined

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