You have a portfolio made up of eleven 25-year coupon bonds


You have a portfolio made up of eleven 25-year coupon bonds and 260 shares of common stock. The bonds have a coupon rate of 6.57% and pay semi-annual payments. They currently have a YTM of 7.66% and 13 years left until maturity. The stocks just paid a per share dividend of $.22 and expect to increase this by 5.8% forever after. The required return on the stock is 7.4%. How much is your portfolio worth? $13,807 $13,599 $12,548 $13,456

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Financial Management: You have a portfolio made up of eleven 25-year coupon bonds
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