What is implicit interest in dollars first year of bond life

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1. A zero coupon bond with a face value of $1,000 is issued with an initial price of $635.66. The bond matures in 21 years. What is the implicit interest, in dollars, for the first year of the bond's life? Use semiannual compounding.

2. The next dividend payment by Mosby, Inc., will be $2.75 per share. The dividends are anticipated to maintain a 7.00 percent growth rate, forever. Required: If the stock currently sells for $49.10 per share, what is the required return? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131989976

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