What is the nature of dividend policy and how does it


1. 15 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000. Now the bond has a yield to maturity of 12.91 percent, compounded semi-annually. What is the current price of the bond?

2. What is the nature of dividend policy and how does it affect the value of the firm.

3. A stock price is currently $50. It is known that at the end of 2 months it will be either $48 or $53. The arbitrage-free price of a 2 month European call on this stock (with a strike of $49) is $1.92. What is the annual volatility of the price of the stock?

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Financial Management: What is the nature of dividend policy and how does it
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