mos has one share of stock and one bond. The total value of the two securities is $1,110.00.The bond has a YTM of 9.80 percent, a coupon rate of 8.75 percent, and a face value of $1,000.00; pays semi-annual coupons with the next one expected in 6 months; and matures in 7 years. The stock pays annu- ividends and the next dividend is expected to be $24.77 and paid in one year. The expected return for the stock is 15.68 percent. What is the price of the tock expected to be in 1 year? O $569.87 (plus or minus 10 cents) O $137.75 (plus or minus 10 cents) O $162.98 (plus or minus 10 cents) O $187.75 (plus or minus 10 cents) O the answer cannot be obtained based on the given information
mos has one share of stock and one bond. The total value of the two securities is $1,110.00.The bond has a YTM of 9.80 percent, a coupon rate of 8.75 percent, and a face value of $1,000.00; pays semi-annual coupons with the next one expected in 6 months; and matures in 7 years. The stock pays annu- ividends and the next dividend is expected to be $24.77 and paid in one year. The expected return for the stock is 15.68 percent. What is the price of the tock expected to be in 1 year? O $569.87 (plus or minus 10 cents) O $137.75 (plus or minus 10 cents) O $162.98 (plus or minus 10 cents) O $187.75 (plus or minus 10 cents) O the answer cannot be obtained based on the given information
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Amos has one share of stock and one bond. The total value of the two securities is $1,110.00.The bond has a YTM of 9.80 percent, a coupon rate of 8.75
percent, and a face value of $1,000.00; pays semi-annual coupons with the next one expected in 6 months; and matures in 7 years. The stock pays annual
dividends and the next dividend is expected to be $24.77 and paid in one year. The expected return for the stock is 15.68 percent. What is the price of the
stock expected to be in 1 year?
O $569.87 (plus or minus 10 cents)
O $137.75 (plus or minus 10 cents)
O $162.98 (plus or minus 10 cents)
O $187.75 (plus or minus 10 cents)
O the answer cannot be obtained based on the given information
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