Please answer question 12 and 13! :) Thank You ; Question 12 (7...
80.2K
Verified Solution
Link Copied!
Question
Finance
Please answer question 12 and 13! :) Thank You
; Question 12 (7 points) A $1,000 par value bond has coupon rate of 7% and the coupon is paid semi-annually. The bond matures in 20 years and has a required rate of return of 10%. Compute the current price of this bond. $1,011.00 $1,000.00 $742.61 $1,199.22 $1,230.57 Question 13 (6 points) According to the constant growth in dividends price formula given in the textbook, if the dividend to be paid one year from today increases and all other factors remain constant, the price of the stock will other factors remain constant, the price of the stock will_and if the required rate of return increases and all other factors remain constant, the price of the stock will _ _: if the growth rate of all future dividends increases and al Increaseincrease: increase Decrease; decrease; decrease Increase: decrease: decrease Decrease; increase; decrease None of the answers listed above are correct
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!