Unformatted text preview: is probably quite low although the YTM will be really high. 1(e) False: The market price of a share of stock equals the discounted value of the stream of future dividends per share, using the appropriate discount rate. 1(f) False: If the net convenience yield is higher than the riskless interest rate, the future price will exhibit backwardation. 1...
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- Fall '03
- Dividend yield, MIT Sloan School of Management, Massachusetts Institute of Technology, Sloan School of Management, higher average returns, MIT Sloan School