1. Assume that a 7% coupon bond with a 30 year maturity has a par value of $1,000. Assuming coupon payments are made twice a year; Determine the value of the bond to an investor whose required rate of return is 12 percent

2.Suppose a bond with a 8% annual coupon rate, has a face value of $1,000, 20 years to maturity and is selling for $ 845. What is its yield to maturity when the face value of the bond is $ 1,000? *

3. Collins & sons are planning to purchase the stock of a firm. Information reaching them is that the firm is expected to increase dividends by 15% in one year and by 20% in two years. After that, dividends will increase at a rate of 6% per year indefinitely. If the last dividend was $10 and the required return is 15%, at what price are Collins & sons expected to purchase this stock