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Question 1 1 pts Given the following information, what is the stock price in period 1? Today's Dividend = $3.08 Expected Growth rate in dividends
Question 1 1 pts Given the following information, what is the stock price in period 1? Today's Dividend = $3.08 Expected Growth rate in dividends = 3.49 Discount Rate (Required return) 9.78 Calculate your answer to the nearest penny (e.g., 2.51) Question 2 1 pts Bond A has the following features: Face value = $1,000, Coupon Rate = 5%, Maturity = 8 years, Yearly coupons The market interest rate is 4.37% What is today's price of bond A? Question 3 1 pts Bond Features Maturity (years) = 7 Face Value = $1,000 Starting Interest Rate 3.81% Coupon Rate = 4% Coupon dates (Annual) If interest rates change from 3.81% to 5.88% immediately after you buy the bond today and stay at the new interest rate), what is the price effect in year 4 ? State your answer to the nearest penny (e.g., 48.45) If there is a loss, state your answer with a negative sign (e.g., -52.30)
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