1. An investment offers a total return of 12.3 percent over the coming year. Yellen thinks the total real return on this investment will be only 9 percent. What does Yellen believe the inflation rate will be over the next year? ( 5 points) 2. Wells Corporation issues the following three bonds. Assume they have same price, par value, and maturity. (5 points) A) Senior debenture, callable B) Subordinated debenture, callable C) Senior debenture, non-callable Sort these three bonds from the highest to the lowest coupon rate: 3. Ponzi Corp. pays a constant $5 annual dividend on its stock. The company will maintain this dividend for the next 9 years. The stock price in 10 years is going to be equal to $100. If the required return on this stock is 8 percent, what is the current share price? ( 5 points)