1. The preferred stock of a company pays a quarterly dividend of $3 forever. What is the present value of all dividends? (Assume the discount rate is 3% per quarter.)

2.Suppose a corporate bond that makes semiannual payments has 5 years to maturity. The coupon rate of this bond is 6%, and the yield to maturity is 8%. The bonds par value is $1,000. What is the bonds price?

3.You expect to receive three cash flows: $3,000 paid after 2 years, $6,000 paid after 4 years, and $8,000 paid after 6 years. The annual interest rate is 5%. What is the present value of the combined cash flows?