1.

Silver Run Inc. has 6% coupon bonds outstanding that pay interest semiannually and have 15 years remaining until maturity. They carry a face value of $1000. These bonds are currently selling for $1143. What price should these bonds sell for two years from now if their yield drops by 100 basis points over the two years?

		$1030.62
		$817.24
		$1044.66
		$1006.27
		$1239.88

2.

Dixon Corp. just paid out a dividend of $4.50 per share of common stock. Analysts expect the dividend to grow by 17% over the coming three years and then grow steadily at 5% for the foreseeable future after that. Investors require a return of 8% on this stock. Dixon stock should be selling for _____ at the end of three years.

		$259.46
		$252.25
		$208.12
		$244.10
		$216.13