1) A 10-year annual payment corporate coupon bond has an expected return of 11 percent and a required return of 10 percent. What can you say about the market price of the bond?

2) What is the duration of a 5 year zero coupon bond with face value of $1000 and required rate of return of 8%.

3) Suppose we observe the following rates: 0R3 = 10% , 3R7 = 14%, 0R5 = 12%. If Unbaised Expectations Theory holds, what is the 2-year forward rate five years from now?

4) A stock youare evaluating has just paid a dividend of $4 and has a constant dividend growth rate of 6% for the first 2 years, and then 7% for the next 3 years. Dividends, will finally be fixed for the rest. If the required rate of return is 8%, what is the current market price of the stock?

5) Consider a 4 year-bond paying 10% semi-annual coupons, selling at $938.77. If the required rate of return is 14%, what is the duration?