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Paul owns investment A and 1 bond B . The total value of his holdings is $ 6 , 4 5 0 . 4 3
Paul owns investment A and bond The total value of his holdings is $ Investment A is expected to pay annual cash flows to Paul forever with the first annual cash flow expected in year from today. Investment A has an expected return of percent. The first cash flow is expected to be $ in year and annual cash flows are expected to increase by percent each year forever. Bond B pays semiannual coupons, matures in years, has a face value of $ has a coupon rate of percent, and pays its next coupon in months. What is the yieldtomaturity for bond B plus or minus plus or minus plus or minus plus or minus
Paul owns investment A and bond The total value of his holdings is $ Investment A is expected to pay annual cash flows to Paul forever with the first annual cash flow expected in year from today. Investment A has an expected return of percent. The first cash flow is expected to be $ in year and annual cash flows are expected to increase by percent each year forever. Bond B pays semiannual coupons, matures in years, has a face value of $ has a coupon rate of percent, and pays its next coupon in months. What is the yieldtomaturity for bond B
plus or minus
plus or minus
plus or minus
plus or minus
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