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Question
Dawn, Inc. stock is $37.00 per share. The company's semi-annual dividend is forecasted as $0.25 per share, increasing every 6 months by 20.0%. What is the price of a zero-coupon equity-linked bond, promising to pay one share in 4 years, given annual interest rates of 6.0%?A) $32.29
B) $33.49
C) $34.39
D) $35.69
Answer
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