Question

#31 In early 2014, riots and protests occurred in the Ukraine resulting in the loss of life. A credit rating agency downgraded Ukraine debt from B to CCC. Suppose that the Ukraine has a zero-coupon bond that will mature in 10.00 years. Based on the table below, what is the new price of the Ukraine debt issue. (The bonds will pay $1,000 at maturity)

Credit Rating	CCC	B	BB	BBB
Yield to maturity	6.95%	6.70%	6.45%	6.30%

Answer format: Currency: Round to: 2 decimal places.

#32 The market price of a stock is $22.90 and it just paid a dividend of $1.26. The required rate of return is 11.52%. What is the expected growth rate of the dividend?

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Answer 1

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