a)You purchased an annual interest coupon bond one year ago that now has six years remaining until maturity. The coupon rate of interest was 10% and par value was $1,000. What was the intrinsic value of the bond at the time you purchased it if the yield to maturity was 8%? a.$1,057.50. b.$1,075.50. c.$1,088.50. d.$1,104.13. b) River Co. just paid a dividend of $2 per share out of earnings of $4 per share. If its book value per share is $25 and its stock is currently selling for $40 per share, calculate the required rate of return on the stock. a.15.2 percent b.7.2 percent c.14.7 percent d.13.4 percent
a)You purchased an annual interest coupon bond one year ago that now has six years remaining until maturity. The coupon rate of interest was 10% and par value was $1,000. What was the intrinsic value of the bond at the time you purchased it if the yield to maturity was 8%? a.$1,057.50. b.$1,075.50. c.$1,088.50. d.$1,104.13. b) River Co. just paid a dividend of $2 per share out of earnings of $4 per share. If its book value per share is $25 and its stock is currently selling for $40 per share, calculate the required rate of return on the stock. a.15.2 percent b.7.2 percent c.14.7 percent d.13.4 percent
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 10P
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a)You purchased an annual interest coupon bond one year ago that now has six years remaining until maturity. The coupon rate of interest was 10% and par value was $1,000. What was the intrinsic
a.$1,057.50.
b.$1,075.50.
c.$1,088.50.
d.$1,104.13.
b) River Co. just paid a dividend of $2 per share out of earnings of $4 per share. If its book value per share is $25 and its stock is currently selling for $40 per share, calculate the required
a.15.2 percent
b.7.2 percent
c.14.7 percent
d.13.4 percent
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