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Please solve all 3 questions! Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,035.33. a. What is
Please solve all 3 questions!
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,035.33. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.6% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.) b. If the bond's yield to maturity changes to 9.6% APR, what will be the bond's price? The new price for the bond is $ (Round to the nearest cent.) Jumbuck Exploration has a current stock price of $2.45 and is expected to sell for $2.57 in one year's time, immediately after it pays a dividend of $0.27. Which of the following is closest to Jumbuck Exploration's equity cost of capital? A. 15.92% B. 7.96% C. 9.55% D. 19.9% Step by Step Solution
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