A corporate bond is quoted at a price of 9896 and has a


1. A corporate bond is quoted at a price of 98.96 and has a coupon rate of 4.8 percent, paid semiannually and with 20 years to maturity. What is the current yield? A. 4.24 percent B. 4.88 percent C. 5.36 percent D. 5.62 percent E. 4.66 percent

2. Big Blue, Inc., announced that it will pay a dividend of $1.50 next year and that it will increase its dividends by 4% annually thereafter for the indefinite future. What is the value of this stock if the discount rate = 12%?

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Financial Management: A corporate bond is quoted at a price of 9896 and has a
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