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Question
Will, Inc. stock is $63.35 per share. The company's quarterly dividend is forecasted as $0.10 per share, increasing 5.0% every quarter. A coupon equity-linked bond, promising to pay one share of Will, Inc. in 2
years pays a semi-annual coupon of $0.20. If annualized interest rates are 8.0%, what is the price of the bond?A) $59.55
B) $61.14
C) $63.12
D) $65.22
Answer
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