What is the usual pattern of cash flows for a share of

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1.How does the market determine the fair value of a bond? 

2.What is the relationship between a bond's market price and its promised yield to maturity?  Explain. 

3.All other things held constant, how would the market price of a bond be affected if coupon interest payments were made semiannually instead of annually? 

4.What is the usual pattern of cash flows for a share of preferred stock? How does the market determine the value of a share of preferred stock, given these promised cash flows?

5.Name two patterns of cash flows for a share of common stock. How does the market determine the value of the most common cash flow pattern for common stock?

Reference no: EM13505552

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