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Suppose a 5-year, $1.000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74. What is the bond's yield to maturity (expressed
Suppose a 5-year, $1.000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? 7.78% o 7.16% 8.13% 8.21% The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 13%. If the dividends are expected to grow at a constant rate, what is the expected growth rate of the firm's dividends? 3% 3.5% 2.5% 4% Consider a project with the following cash flows: Year 0 1 2 3 4 Cash Flow -10,000 4,000 4.000 4.000 4.000 If the opportunity cost of capital for the project is 15% per year, what is the NPV of the project? $1,248.39 $1,617.17 $1,192.72 $1.419.91
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