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Please fill out red question marks with excel formulas. please leave cell number/letter as is. Thank You! A B E F G 1 2 3
Please fill out red question marks with excel formulas. please leave cell number/letter as is. Thank You!
A B E F G 1 2 3 Q1: What is the price of a bond with the following characteristics? 4 5 6 6 7 8 Settlement date: Maturity date: Annual coupon rate: Yield to maturity: Face value % of par) Coupons per year: face value (dollar): 1/1/2005 1/1/2022 3.75% 6.74% 100 2 $1,000 9 10 11 12 13 Bond price % of par): ? 14 15 Dollar price of bond: ? 16 A B D E F F G 1 2 2 3 Q2: Constant Dividend Growth 4 5 6 Current dividend: 7 Dividend growth rate: 8 Required return: $ 1.95 8.92% 17.00% 00 ON 10 11 12 With this growth rate, the dividend next year will be: 13 14 15 Dividend next year: ? 16 17 18 Stock price today: ? 1 2 3 Q3: Nonconstant Growth 4 5 Suppose a stock will pay the following dividends and has the following required return: 6 7 8 9 Year 1: Year 2: Year 3: Year 4: Required $ 0.75 $ 1.23 $ 1.55 $ 1.95 7.8% 10 11 12 13 After the fourth year, the dividends will grow at: 4.0% 14 ? 15 16 Price in Year 4: 17 18 Price todayStep by Step Solution
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