Question: Given the information in the table, what is the dividend yield from t=0 to t=1? Todays Dividend $3.17 Discount Rate 7.25% Growth rate in dividends

Given the information in the table, what is the dividend yield from t=0 to t=1?

Todays Dividend

$3.17

Discount Rate

7.25%

Growth rate in dividends 0 to 1

6.14%

Growth rate in dividends 1 to 2

7.19%

Growth rate in dividends 2 to 3

8.44%

Growth rate in dividends 3 onward

4.05%

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 4%,

Maturity = 10 years, Yearly coupons

The market interest rate is 4.74%

What is todays price of bond A?

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