What is the periodic rate of interest

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Question 1: C Ltd bonds currently sell for $1,180, have an 11% coupon interest rate and a $1000 par value, pay interest annually and have 18 years to maturity. Calculate the bonds' yield to maturity (YTM).

Question 2: ?M Ltd. common stock currently pays an annual dividend of $3.60. The required return on the common stock is 6%. Dividend is expected to grow at an annual rate of 5% for each of the next 3 years followed by a constant annual growth of 4% in year 4.
?Calculate the current market price of the common stock.

Question 3: Rohan Industries has $1,000 par value bond with a 16% coupon interest rate outstanding. The bond has 12 years remaining to its maturity date. If interest is paid semi-annually, what is the value of the bond when the required rate of return is 14%.

Question 4: ?An investment pays 20% interest, compounded quarterly.

i) What is the periodic rate of interest?

ii) What is the nominal rate of interest?

iii) What is the effective rate of interest?

Reference no: EM132523160

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