1)You have been offered to buy a stock in ABC co., ABC company has a relatively high risk level and the estimated discount rate is equal to 10%, the company used to increase the dividends by 3% annually, the dividends paid last year were JD 0.90, what is the fair price that you are willing to pay for that stock right now?

2)A 15 years bond with annual coupon rate equal to 8% (paid semi), if the par value of the bond is JD 10,000, the bond is redeemable at JD 9000, what is the fair price for the bond assuming the interest rate is 9%?

3)For the previous question, if the Investor purchased the bond, and later on he decided to sell the bond in the secondary market, particularly after 3 years, what will the fair price be at that time assume the interest rate increased to 10%?

4)A father decided to open a saving account for his daughter in order to use it when he attend the university, and the father can save JD300 per month from his salary for the planned period except for March due to the tuition fees for the school. Assuming the rate on saving account was 7% p.a. compound monthly, what will the investment amount be at the time the daughter attends the university, given that the daughter is 14 years old right now.

5)A mother would like to save a fixed amount of money out of her salary to be prepared for her son when he attends the university, she can save and deposit JD1000 at the end of each year, the bank offered her a floating rate saving deposit based on the changes imposed by the central bank. Assuming the rate, based on the banks expectations, will be 7% for the next 3 years compounded annually, and 8% for the next 5 years compounded semiannually, and 9% for the next 5 years compound quarterly. If the son is 10 years old how much will the saved amount be at the time he attends the university (18 years old)?

6)I would like to save for my 3 years old son's bachelor education, the attending age for bachelor degree is 18 years old, and the bachelor study will last for four years (two semesters per year), the fees will be paid on a semiannual base at the beginning of each semester. The education costs are expected to be JD 5000 per semester. Based on my salary I can save JD 500 every month for the coming 15 years, the interest rates is 5% compound annually. Based on this plan, and on the time my son attends the university, will there be any surplus or deficit of the savings?