1.If you purchase a 5-year, zero-coupon bond for $691.72, how much could it be sold for 3 years later if interest rates have remained stable? Show your calculations!

A.$848.12

B. $923.50

C.$862.92

D.$911.15

2.What is the expected constant-growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and has a required return of 18%? Show your calculations!

A.3.41%

B.5.50%

C. 9.26%

D. 12.5%

3.What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20%, and a constant dividend growth rate of 6%? Show your calculations!

A.$19.23

B. $25.00

C. $35.71

D. $37.86