Multiple Choice
Wayne,Inc.stock is $40.00 per share.The company's quarterly dividend is forecasted as $0.45 per share,indefinitely.A coupon equity-linked bond,promising to pay one share of Wayne,Inc.in 3 years pays a quarterly coupon of $0.50.If annual interest rates are 4.0%,what is the price of the bond?
A) $40.56
B) $42.60
C) $44.56
D) $46.60
Correct Answer:
Verified
Correct Answer:
Verified
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