Von Bora Corporation is expected to pay a dividend of $1.40 per share at the end of this year and $1.50 per share at the end of the second year. You expect the price of Von Bora's stock to be $25.00 at the end of two years. The Cost of Capital of Von Bora Stock Is 10%


Suppose you plan to hold Von Bora stock for only one year. Calculate your total return from holding Von Bora stock for the first year.





The Sisyphean Company has an outstanding bond with a face value of $1,000 that matures in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that coupon payments will be made semi-annually.



How much is each of the semi-annual coupon payments? Assuming the appropriate YTM of the Sisyphus bond is 8.8%, at what price should this bond trade (3 POINTS)?




Assuming that this bond is trading at $1,035.44, then the YTM of this bond is equal to ?