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What is the present value of this coupon bond

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1.) Suppose you're given with the following information for some assets; a 10-year 2.0%-coupon bond of semi-annual coupon payment with face value as $1,000, a common stock of $3.60 expected dividend with 2.5% growth rate currently. Both bond and common stock are issued by Company M&M. Answer the following questions.

a) Suppose the yield to maturity (that is, the discount rate) for the bond is 10%, what is the present value of this coupon bond?

1) $435.67

2) $501.51

3) $738.9

4) $583.20

5) none of the above

Reference no: EM131721665

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