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Answer the following questions for Bow River International Corporation (BRIC). Each question is separate. a. BRIC has a 6% coupon bond interest paid semi-annually) on the market that has 10 years left to maturity. If the Yield to Maturity on these bonds is 7 percent, what is the current bond price (2 marks) b. BRIC recently paid a dividend of $2.25 on its common stock, and the company is expected to increase the dividend by 3% each year going forward. If the required rate of return for investors is 11%, what is your best estimate of the current price of BRIC’s common stock? (2 marks) RA Paragraph B V 1 UA A/ + v GO
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