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Hot Topic: Get 10% off ($30 Max Discount) // Restrictions: Must pay with Klarna The Body Shop : Get 20% off when you spend $50 // Use code: KLARNADEAL Casetify : Buy one phone case, get 20% off ...
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Coupons are normally described in terms of the "coupon rate", which is calculated by adding the sum of coupons paid per year and dividing it by the bond's face value. For example, if a bond has a face value of $1,000 and a coupon rate of 5%, then it pays total coupons of $50 per year.
However, if the future dividends represent a perpetuity increasing at 5.00% per year, then the dividend discount model, in effect, subtracts 5.00% off the discount rate of 12.50% for 7.50% implying that the price per dollar of income is $13.33. References
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