What is the current bond price

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Question - Answer the following questions for Bow River International Corporation (BRIC). Each question is separate.

1. BRIC has a 6% coupon bond (interest paid semi-annually) on the market that has 10 years left to maturity. If the Yield to Maturity on these bonds is 7 percent, what is the current bond price?

2. BRIC recently paid a dividend of $2.25 on its common stock, and the company is expected to increase the dividend by 3% each year going forward. If the required rate of return for investors is 11%, what is your best estimate of the current price of BRIC's common stock?

Reference no: EM132789215

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