question 1 consider the bonds of ibm coupon 1


Question 1: Consider the bonds of IBM: coupon 1%, term 3 years, issued in August 2010. Why do investors buy these bonds with only 1% rate of return? Give some reasons to justify your answer.

Question 2: IBM stock sells at about $195 per share and pays an annual dividend of $3.40. What is its annual dividend yield? Would you rather buy the stock or the bonds of IBM? Give some reasons.

Request for Solution File

Ask an Expert for Answer!!
Corporate Finance: question 1 consider the bonds of ibm coupon 1
Reference No:- TGS0502630

Expected delivery within 24 Hours