1. Seagate Technology issues a 5 percent coupon bond with 17 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond is 13 percent, find the bond's price.

a. $682.68

b. none of the answers is correct

c. $456.94

d. $708.06

e. $643.69

2. Discover Financial Services issues a 4 percent semi-annual coupon bond with 23 years maturity and $1,000 face (par) value. If the current market price of this bond is $1052, find its yield to maturity.

a. 9.87%

b. 3.66%

c. 8.57%

d. none of the answers is correct

e. 18.89%

3. Hershey Foods Corp has a common stock that just paid a dividend of $8 per share. If the required return is 0.19 and the growth rate of firm is 0.02, find the common stock price today. (Round to the nearest dollar.)

a. $55.4

b. $33.7

c. $67.2

d. $48.0

e. None of the answers is correct.