Question: 1 . All other things equal ( YTM = 1 0 % ) , which of the following has the shortest duration? a ) A

1. All other things equal (YTM =10%), which of the following has the shortest duration?
a) A 15-year bond with a 4% coupon
b) A 5-year bond with a 4% coupon
c) A 15-year bond with a 10% coupon
d) A 5-year bond with a 10% coupon
2. The market capitalization rate on the stock of AA Wholesale Company is 10%. Its expected ROE is 14%, and its expected EPS is $5. If the firm's plowback ratio is 50%, its P/E ratio will be __________.
a)24.15
b)28.33
c)19.23
d)16.67
thank u so much

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!