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Q2 (25 marks) a) A GMC Corp. bond carries an 8% coupon, paid semiannually. The par value is $1,000, and the bond matures in six

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Q2 (25 marks) a) A GMC Corp. bond carries an 8% coupon, paid semiannually. The par value is $1,000, and the bond matures in six years. If the bond currently sells for $911.37, what is its yield to maturity? What is the effective annual yield? I b) Mitsubishi Corp.pays a constant $9.75 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 10%, what is the current share price? edictions on

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