Used to infer the expected rate of return on common stock

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How can one find the market price of a bond given its yield to maturity or find a bond’s yield given its price? Why do prices and yields vary inversely?

Why do bonds exhibit interest rate risk?

How can stock valuation formulas be used to infer the expected rate of return on a common stock?

How does competition among investors lead to efficient markets?

Reference no: EM131893235

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