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please help 17. The ,zero-coupon bonds of Ent Movers have a market price of $319.24, a face value of $1,000, and a yield to maturity
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17. The ,zero-coupon bonds of Ent Movers have a market price of $319.24, a face value of $1,000, and a yield to maturity of 8.45 percent. How many years is it until these bonds mature? a. 55.18 years b. 27.59 years c. 11.92 years d. 13.80 years Answer. 18. In calculating the current price of a bond paying semiannual coupons, one needs to a. Double the number of years for the number of payments made. b. All of the things listed need to be done. c. Use the semiannual yield to maturity rate as the discount rate. d. Calculate the semiannual coupon payment amount. Answer: 19. The Dwarf Corporation just paid a dividend of $3.00 per share. Management expects dividends to grow at a constant rate of 10% per year. If the required rate of return on the company's stock is 14%, how much would the stock be worth at the end of three years from today? a. $82.50 b. $109.81 c. $99.82 d. $21.42 Answer: 20. A 17-year, semiannual coupon bond is selling for $1,030. The bond has a face value of $1,000 and a yield to maturity of 5.95 percent. What is the coupon rate? a. 6.40% b. 6.23% c. 5.95% d. 3.12% e. 2.65% Step by Step Solution
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