Calculate the current market value of this stock

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Reference no: EM131030823

Gucci Corporation has issued bonds that have a 7% coupon rate, payable annually. The bonds mature in 8 years, have a par value of $1,000 and a yield to maturity of 10%.Calculate the price of the bonds.

A stock you are evaluating is expected to pay a constant dividend of $12 each year into the future. The expected rate of return on the stock is 15%. Calculate the current market value of this stock.

Reference no: EM131030823

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