Solved: Determine the bonds coupon rate, Finance Basics

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Determine the bonds coupon rate

Question 1. Suppose a five year, $1000 bond with annual coupon has a price of $900 and yield to maturity of 6%. What is the bond's coupon rate?

Question 2. Summit Systems will pay a dividend of $1.50 this year. If you expect Summit's dividend to row by 6% per year. What is its price per share if its equity cost of capital is 11%?

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Finance Basics: Determine the bonds coupon rate

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