A ten-year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity? (Show all work/calculations/formulas).
An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the market's rate of return is 16%? (Show all work/calculations/formulas).© BrainMass Inc. brainmass.com June 4, 2020, 1:58 am ad1c9bdddf
This solution discusses stock prices and yield to maturity of bonds.