1. A Zero-coupon bond with maturity of 5 years is trading at the 78.15 per 100 face value. How much is the yield to maturity for the bond. A. 27.96% B. 5.05% C. 7.38% D. 6.24% 2. Suppose ABC plc will pay a dividend of 55p at the end of this year and 75p per share next year. You expect ABC's stock price to be 500p in two years. If ABC' cost of equity capital is 10%, what price would you be willing to pay for a share of ABC ' stock today if you planned to hold the stock for two years? (to the nearest penny) A. 525p B. 475p C. 475p D. 520p