Question: A bond has ten years until maturity. The face value on the bond is $1,000.00, while the coupon rate attached to the bond is 9.75%.

A bond has ten years until maturity. The face value on the bond is $1,000.00, while the coupon rate attached to the bond is 9.75%. The bond pays coupons on an annual basis. Investors seek a 7.90% return on the bond. What is the yearly coupon for this bond?

The risk-free rate is 2.36% and the market risk premium is 7.42%. A stock with a of 1.04 just paid a dividend of $2.54. The dividend is expected to grow at 22.19% for five years and then grow at 4.45% forever. What is the value of the stock?

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