1) Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $911. It has an annual coupon rate of 11.70 percent, paid semiannually, and has 28-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?

Round the answer to two decimal places in percentage form. You should use Excel or financial calculator.

2) You are considering the purchase of Crown Bakery, Inc. common stock that just paid a dividend of $19.59 per share. You expect the dividend to grow at a rate of 1.04 percent per year, indefinitely. You estimate that a required rate of return of 12.18 percent, will be adequate compensation for this investment. What is the most that you would be willing to pay for the common stock if you were to purchase it today?

Round the answer to two decimal places.