Question: Question 18 (4 points) Answer the following questions for Bow River International Corporation (BRIC). Each question is separate. a. BRIC has a 6% coupon bond

 Question 18 (4 points) Answer the following questions for Bow River

Question 18 (4 points) Answer the following questions for Bow River International Corporation (BRIC). Each question is separate. a. BRIC has a 6% coupon bond (interest paid semi-annually) on the market that has 10 years left to maturity. If the Yield to Maturity on these bonds is 7 percent, what is the current bond price (2 marks) b. BRIC recently paid a dividend of $2.25 on its common stock, and the company is expected to increase the dividend by 3% each year going forward. If the required rate of return for investors is 11%, what is your best estimate of the current price of BRIC's common stock? (2 marks)

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