1.Identify at least four factors that affect a bonds yield and explain the effect each factor has on the yield.

2.value of a stock (i.e. stock price) is the present value of ALL its future dividend. In real world, an investor will normally hold the stock for a limited time (for example, 3 years). Therefore, this investor receives only dividends during this period (e.g. dividends during the 3-year holding period). Why dividends afterwards (e.g. why dividends after year 3) are relevant to this investor?

3. Why price of a stock with constant growing stock grows at the same rate as the dividends?