A person wants to invest $15,000 in a bond that pays a 7% coupon rate annually, with
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A person wants to invest $15,000 in a bond that pays a 7% coupon rate annually, with semi-annual payments. The bond has a maturity of 5 years and is priced to yield 5%. Calculate the price of the bond and the semi-annual coupon payment.
A stock is currently trading at $50 per share and is expected to pay a dividend of $2 per share at the end of the year. The required rate of return is 10%. Calculate the value of the stock using the dividend discount model.
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