1. SHIELD Inc. has bonds on the market with 13 years to maturity, a YTM of 9%, and a current price of $1000. The bonds make semi-annual payments. What is the coupon rate?

2. Suppose Facebook Inc. currently pays $1 dividend. Analysts project that the dividend for the next three years will be $1, $2, and 5$. After that the annual dividend is predicted to grow at 5% per year. Investors require a 10% rate of return. What is the value of one share of Facebook stock under these assumptions?

3. If your grandma tells you that she brought a stock at 5 dollars and says it is currently 4 dollars, so she doesnt want to sell it. What behavioral bias is she exhibiting?

4. What does it mean when someones says The stock market is efficient? What are the implications for investing in the stock market?