Julie has one share of stock and one bond. The total value of the two securities is $1,102.14. The stock pays annual dividends. The next dividend is expected to be $15.15 and paid in one year. In two years, the dividend is expected to be $11.79 and the stock is expected to be priced at $254.84. The stock has an expected return of 11.19 percent per year. The bond has a coupon rate of 7.10 percent and a face value of $1,000; pays semi-annual coupons with the next coupon expected in 6 months; and matures in 17.5 years. What is the YTM of the bond?
8.68% (plus or minus 4bps )
8.51% (plus or minus 4bps )
4.26% (plus or minus 4bps )
9.25% (plus or minus 4bps )
the answer cannot be obtained based on the given informatio
Julie has one share of stock and one bond. The total value of the two securities is $1,102.14. The stock pays annual dividends. The next dividend is expected to be $15.15 and paid in one year. In two years,the dividend is expected to be $11.79 and the stock is expected to be priced at $254.84. The stock has an coupon expected in 6 months;and matures in 17.5 years.What is the YTM of the bond? expected return of 11.19 percent per year. The bond has a coupon rate of 7.10 percent and a face value of $1,000;pays semi-annual coupons with the next O8.68%(plus or minus 4bps) O8.51%plus or minus 4 bps O4.26%(plus or minus 4 bps) O 9.25% (plus or minus 4 bps O the answer cannot be obtained based on the given information