1. A bond pays annual interest of $5,000 per year for each of the next ten years. There is no payback of principle. At what price will the bond sell if investors require a 6.0% return on their investment in the bond?

2. Roger is saving money for a car that he would like to purchase five years from today. He plans on making five equal annual deposits into an account earning 2.0% interest, beginning today. How much will Roger have to spend on the car if he can deposit $4,000 each time?

3. A stock currently pays a dividend of $3.20 per share, which is expected to grow to $3.31 next year. The stock currently sells at $41.40. What is the expected return on this investment?