2. (10%) The risk-free rate of return is 10%, the required rate of return on the market is 15%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.5 and g-5%, at what price should a share sell? 3 (10%) Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4%. The bond has 3 years until maturity. Find the band price today and six months from now after the next coupon is paid, assuming the market rate will be constant during the following 6 months. What is the total rate of return (holding period return) on the bond over the six-month period? 4. (10%) Suppose that today is April 15. A Treasury bond with a 10% coupon paid semiannually every January 15 and July 15 is listed in the Wall Street Journal as selling at an ask price of 101.04. If you buy the bond from a dealer today, what price will you pay for it? Hint When you count of days from Jan 15 to Apr 15. please just count either Jan 15 or Apr 15, but not both. For half year period, you can assume 182 days