Question: please include any excel functions and steps taken. thank you! 3. (1) Bonn Corporation has two bonds outstanding. All two have a coupon rate of
please include any excel functions and steps taken.
thank you!
3. (1) Bonn Corporation has two bonds outstanding. All two have a coupon rate of 12% and a $1,000 par value. Coupon payment is made semiannually. The first bond has 2 years left to maturity. The second bond has 5 years to maturity. Assume that the market rate for bonds is 6%. What is the value of each of the bonds? What is the relationship between the price of bond and the maturity? (2) Bonn Corp just paid a $3.00 per share and is forecasted to increase its dividend by 4% for the first 3 years and then'grow by 5% indefinitely. What is the current Bonn Corp's stock price if the market interest rate is 10%
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