1. Calculate the current bond value of the following bond: it has a par value of $1000 with a coupon rate of 8% paid annually and matures in 5 years. The required return is 4%.

1178.07

1386.09

2465.78

2651.46

2.Assume that a stock has the same dividend paid in perpetuity. Find the value of the stock with a $3 annual dividend if the required return is 2%.

2.94

3.06

150

1500

3.Company Xs most recent dividends were $1 per share last year and $1.05 this year. Assuming a constant rate of growth and a required return of 7%, find the value of Xs common stock.

52.5

55.13

1.05

15