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What is the current price of the bond

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A bond that has 15 years left until maturity and face value of $1000. The coupon rate is 9.95%. The firm uses the same rate of return for their bonds as they do their common stock, which is currently selling for 12.84$ per share. They have adopted a constant growth of 4.5% in their dividends, with the one just paid being 1.11$. What is the current price of the bond if the coupons are paid annually? Show your work

Reference no: EM132000373

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