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A company’s stock will pay a dividend of $10 next year. Dividends will grow at a constant rate of 11% indefinitely and the expected return on stock is 12.564%. Consider a bond that has the same price

A company’s stock will pay a dividend of $10 next year. Dividends will grow at a constant rate of 11% indefinitely and the expected return on stock is 12.564%. Consider a bond that has the same price as the stock. If this bond has a coupon rate of 1% and a YTM of 10%, what is the maturity of the bond?

Apr 14 2021 View more View Less

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