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QUESTIONS 6.25 points Save Ans Assume that there is a freshly-Issued coupon bearing bond with a face value of 10,000, which has four years to
QUESTIONS 6.25 points Save Ans Assume that there is a freshly-Issued coupon bearing bond with a face value of 10,000, which has four years to maturity and pays an annual coupon rate of 10%. The market prices of zero-coupon bonds with a face value of 100 and different years to maturity are shown below: Time-to-Maturity in years) 1 2 Market Price E98.04 194.26 E88.90 E82.27 The market price of the coupon-bearing bond rounded to two digits) should be equal to: O 12.512.78 11,861.71 E11.472.30 E12.222.99 QUESTION G 6.25 points Assume a 10-year coupon-bearing borld with a 26 coupon rate and a face value of 100. Coupon payments are made at the end of each year. The effective annual Interest rate is 3. What is the value of the band at its issuance le at time to 58456 1.65 (1083 69147 1 ign 6.25 points QUESTION 7 Manchester ple expected to pay anal dividends of 1.50.175 and 3.00 per share at the end of each of the three e from 1 tot 3 After year annual didendspected to grow arate of in forever. Assuming the den in equal to per year what is the fair value for the share of
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