1) The Sisyphean Company has a bond outstanding with a face value of

$1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.8% and that the coupon payments are to be made semiannually.

Assuming the appropriate YTM on the Sisyphean bond is 9.6%, then the price that this bond trades for will be closest to:

A.$750

B.$1,312

C.$1,124

D.$937

2) What is the yield to maturity of a one-year, risk-free, zero-coupon bond with a

$5,000 face value and a price of $4,750 when released?

A.5.263%

B.2.632%

C.5%

D.0.019%

3) Avril Synchronistics will pay a dividend of $1.30 per share this year. It is expected that this dividend will grow by 4% each year in the future. What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 15%?

A.$13.00

B.$ 11.82

C.$8.87

D.$8.27