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Please help me in these questions. Its urgent. Kindly answer all parts a. Suppose you are planning on investing in a stock whose current price

Please help me in these questions. Its urgent. Kindly answer all parts

a. Suppose you are planning on investing in a stock whose current price is $40. The the dividend that the stock had payed out this period was $5 and the company has promised a dividend growth rate of 2%. What would the required return of this stock be?

b. Suppose the coupon bond market is at the long run equilibrium. With the current price $10 and an annual coupon payment of $4, what would be the expected return on a one period coupon bond under Rational Expectations?

c. Start with the basic bond market model (see example below). Is the quantity of bonds within the market pro or counter-cyclical, how can you conclude this? (You may find it helpful to graph an economic expansion or contraction).

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Price Supply Demand Quantity

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