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Author Question: The maturity premium for Treasury Bonds over Treasury bills rose in the first part of the 21st ... (Read 185 times)

cdr_15

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on: Jul 10, 2018
The maturity premium for Treasury Bonds over Treasury bills rose in the first part of the 21st century compared to the premium over the last 50 years of the 20th century.
 
  Indicate whether the statement is true or false.

Question 2

The Blockbuster business model is slowly dying and so Blockbuster's dividends are expected to grow at a rate of -2 per annum in perpetuity.
 
  Blockbuster just (yesterday) paid a dividend of 2.00 per share. Blockbuster pays dividends annually. Stock holders require a rate of return of 10. What is the fair stock price for Blockbuster today?
  A) 16.33
  B) 25.50
  C) 17.00
  D) 24.50
  E) 16.49


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moormoney

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE
Explanation: 2.21 vs 1.41

Answer to Question 2

A


cdr_15

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

sultana.d

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Reply 3 on: Yesterday
Excellent

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