1)Lesnar's Tools has a 9-year, 7% annual coupon bond outstanding with a $1,000 par value. Peter's Tools has a 10-year, 6% annual coupon bond with a $1,000 par value. Both bonds currently have a yield to maturity of 6.5%. if the market yield increases to 6.75% the what is the impact on the bond?

2) Explain the bond theorems discussed in class with respect to time and coupon.

3)The Robert Phillips Co. currently pays no dividend. The company is anticipating dividends of $0, $0, $0, $.10, $.20, and $.30 over the next 6 years, respectively. After that, the company anticipates increasing the dividend by 4% annually. Explain the steps in computing the value of this stock today.

4) Skyline Inc. is expecting to pay $1.23, $0.99, and $1.13 in annual dividends for the next three years respectively. After that, it projects that dividends will increase by 1.5% annually. Andy is in the 25% marginal tax bracket and wants to earn 6% after-tax on his investments. How much is Andy willing to pay today for one share of Skyline Inc.'s stock?