1. A Treasury zero coupon bond is currently selling for $300 and will mature in 20 years. The face value if $1,000. What is the annual expected return if investor purchases this bond , assuming annual compounding ?

2. Southern Co. has a semiannual bond with a coupon rate of 10.2 percent. The bonds mature in 20 years and have par value of $1,000If these bonds currently sell for $935, what is the yield to maturity (YTM ?

3. AMZ Company common stock is expected to pay a dividend of \$3.71 next year and maintains a growth rate of 6 percent per year indefinitely . If the required return on the stock is 13 percent, how much should investor pay for the stock now?

4. Viva Energy has a preferred stock outstanding that pays $7.35 in annual dividend annually. If investors require 12 percent on the stock, what is the price of the stock now ?