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Unformatted text preview: will be 103% of the dividend in the prior quarter. Calculate the price of the common stock to yield 20% compounded quarterly. 3. A 10 year callable bond is purchased to yield an annual effective rate of 8%. The bond matures for 10,000 and has annual coupons of 900. The bond is callable as follows: Call Date Call Value End of 6 Years 10,300 End of 7 Years 10,250 End of 8 Years 10,200 End of 9 Years 10,100 Calculate the price of the bond....
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 Spring '08
 Staff
 Math, callable bond, Puttable bond

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