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Q1. What is the current market price of a bond that has a face value...

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Finance

Q1. What is the current market price of a bond that has a face value of $1 million at the end of 2 years and pays semiannually coupons at a rate of 5.2% p.a., if the discount rate is 8% p.a.? (Show your calculations)

Q2. Facebook paid its common stocks a dividend of $0.77 last year. The company expects growth to continue at 10% p.a. for the next 2 years and 5% p.a. thereafter. What is the current price of the share? common shareholders rate of return is 10% p.a. (Show your calculations)

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