100 6. Suppose you buy a 10 year zero coupon annual bond with yield to maturity of 1% and a face value of $100. If you hold the bond for 4 years and then decide to sell it to someone else, which of the following accurately describes the price you would sell the bond for? (a) (1.04) (b) (1.01) (e) (1.01) (d) 100 100 100 (1.04) 7. ABC Corporation currently pays a dividend of $1 per share. If that dividend grows at a rate of 4% per year forever and given an expected equity cost of capital of 5%, what is the current stock price of ABC Corporation? (a) $100 (b) $1000 (c) $11.1 (d) $10