Question: Can you please help me out with these two? For question 1 assume it is 4 years COUPON BOND 1. Bradford inc. has a coupon
Can you please help me out with these two?
For question 1 assume it is 4 years
COUPON BOND 1. Bradford inc. has a coupon bond that has a 10% coupon rate. The bond has a par value of $1000 and is expecting to mature in years. If the YTM is 4%, what is the value of this bond? Is your bond selling at a discount or at a premium? 2. STOCK VALUES Zion Inc. will pay a $4.25 per share dividend in year 5. The company pledges to increase its dividend by 5% (g) per year indefinitely. If you require a 10% return (r) on your investment, how much will you pay for the company's stock today (Po)
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