1) Assume a corporation's bond has 19 years remaining until maturity. The coupon interest rate is 9.8% and the bond pays interest semi-annually. Assume bond investors' required rate of return on the bond is 8.9%. What would be the expected market price of this bond. (Assume a $1000 par value.) Answer to 2 decimal places.

2) Assume that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of period 3 for a stock are as follows: D1 = $1.20, D2 = $1.40, D3 = $1.55, and P3 = $95 . What should be the stock's expected price today, (i.e. P0 )? I encourage you to draw a time line clearly indicating the situation. Assume the required return is 8.8 percent. Answer to 2 decimal places.

3) What is the present value (aka price) of a 28-year, pure discount bond (zero coupon bond) that pays $1000 at maturity if it is priced to yield 8.4% per year (YTM)? Answer to 2 decimal places.