1)

You purchased a 30 year, $1,000 face value, 7% coupon bond 5 years ago. The current market rate for similar bonds is 6%. How much is that bond worth today (i.e. what is the present value of the bond today)?

Group of answer choices

1127.83

1429.66

1000.00

984.68

2)

A stock will pay the following dividends for the next 3 years: $1.00, $2.00, and $3.50. After that, dividends are expected to grow at a constant rate of 6%. If the stocks required rate of return is 8%, what should the stock sell for today?

Group of answer choices

163.75

146.94

152.67

184.03