1. Los Angeles 1st National Bank issued $1000 par, 20-year bonds, with a coupon rate of 6.5% on April 30, 2015. If the bonds are currently selling at $758.18, what is the bonds YTM?

2. Percy Grainger & Company currently earns $3.00 per share and the company plans to pay 40% of its after-tax earnings as dividends, currently at $1.20 per share in dividends. It is expected to have a constant growth rate of 7% per year. If the risk-free rate of return is 6%, the market risk premium is 8%, and the beta for this company is 1.0, what is the stock price?