What is the yield that trevor would earn by selling bonds

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Q1. Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $982.79. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,061.13, what is the yield that Trevor would earn by selling the bonds today?

Q2. The First Bank of Ellicott City has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this stock. What is the current price of this preferred stock given a required rate of return of 11.5 percent?

Reference no: EM131919285

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