1. The following table provides prices and dividends paid for one share of Galadriel Corporation. Assume that 4,200 shares are purchased on 01/01/2017. Assume also that all dividends received are reinvested into new shares. Find the annual geometric return over the three year period. Show all workings

2. Calculate the modified duration of a four-year 1.7% coupon bond (paid annually) trading at a yield of 2.5%. The bond has a $1,000 face value. Show all workings

Date Galadriel Share Price Dividends Per Share 01/01/2017 11.50 0.50 31/12/2017 12.80 0.55 31/12/2018 12.10 0.57 31/12/2019 12.80 0.60