What is the bond yield to maturity

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1. Bonds of Riverhawk Sport Authority (RSA) are selling in the market for $957.10. These bonds carry a 9.50 percent coupon paid semiannually, and have 20 years remaining to maturity. What is the bond’s yield to maturity?

2. Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay a constant dividend of $6/year forever. If you require 14 percent rate of return on investments in this risk class, how much is this stock worth to you?

Reference no: EM13949070

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