question archive A)  An 8% annual coupon bond matures in 5 years

A)  An 8% annual coupon bond matures in 5 years

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A)  An 8% annual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 8.21%. What is the bond's current price and yield to maturity (YTM)?

B.A Company's stock has just paid dividend of $6.50 and expected to pay dividend of $6.89 next year. The stock's required rate of return is 16%. Calculate the current market price of the stock if the dividend growth rate is constant.

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