1) Jumbuck Exploration has a current stock price of $2.20 and is expected to sell for $2.31 in one year's time, immediately after it pays a dividend of

$0.23. Which of the following is closest to Jumbuck Exploration's equity cost of capital?

A.7.73%

B.9.28%

C.15.46%

D.19.33%

2) Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of this bond is5.3%, then the price of this bond is closest to:

A.$83.53

B.$100.00

C.$71.60

D.$60.00

3)A company issues a ten-year bond at par with a coupon rate of 6.6% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.2%. What is the new price of the bond?

A.$907

B.$1,270

C.$1,089

D.$1,000