Question: 2. (10 points total 2 points each) a. What is the rate of return on a $1,000 bond that pays annual coupons of $60 per

2. (10 points total 2 points each) a. What is the rate of return on a $1,000 bond that pays annual coupons of $60 per year? It currently is priced at $980.00 and has nine years before it matures. Show your answer as xx.xxx% 6. Hershey's stock price one year ago was $145. It currently is selling for $174. What is the capital appreciation (both $ amount and %) experienced over the last year? c. Hershey also paid dividends of $3.20 over that same period. What was Hershey's Total Shareholder Return from the last year. d. What is the Effective Annual Rate if the Stated Rate (APR) is 4.75% compounded monthly? e. What is the current value of a share of stock that just paid a $2.00 dividend and is expected to grow by 6.5% annually, forever? The required return is 12.25%
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