1) A company has an 8.8 percent coupon bond outstanding that matures in 12 years. The bond pays interest quarterly. What is the market price per bond if the face value is $1,000 and the yield to maturity is 5.4 percent?

2) If we require a 13% real return and we expect inflation to be 7%, what is the nominal rate using the accurate Fisher Effect?

3) A company is expected to increase dividends by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. The last dividend was $1, the required return is 12%, what is the current price of the stock?