1). ABC Company issued a 20-year quarterly pay bond 4 years ago. The face value of the bond is $1,500 and the coupon rate is 5%. The current market rate on comparable bonds is 4%. At what price would you value the bond?

2). The RBCAB Corporation just paid a dividend of $1.13 per share. The company's CFO expects that the dividend will remain at that level for three years. After year three, it is expected that the dividend will grow at a rate of 4% indefinitely. If the required return is 10%, what is the value of stock today? At 5 years? At 10 years?