2. A semiannual bond has an 8% coupon rate, 10-year maturity and is priced at $875.38. Face value is $1,000.
What is the annual yield-to-maturity? (4)				(solve for semiannual YTM then remember to multiply by 2 at the end)
-1487913.6%
3. Semiannual bonds have 10 years to maturity, a YTM of 6%, and a current price of $851.23 Face value is $1,000.
What is the annual coupon rate on these bonds? (4)					(remember to multiply by 2 at the end)

1. The most recent annual dividend was $1.00 (D0). The dividend is expected to grow at a constant rate of 4%. The required return on the stock is 10%. Using the constant growth dividend discount model, what is the price of the stock today? (4)
2. A stock's price is $50. The upcoming year's annual dividend is expected to be $2.00 (D1). The annual growth in dividends is 5%. What required return (discount rate, r) is being used by the market to value the stock? (4)
3. The annual growth rate in EPS is 5%. The P/E ratio is 12x. EPS last year was $1.00. What should the stock price be in 5 years? (3)
4. Find the price today of a stock that will pay dividends as follows: Next year, D1: $2.00 Two years from, now D2: $2.15 (6)
Beginning in year three the dividend will begin to grow constant at 3%. So the year 3 dividend D3 is $2.21.
The discount rate (required return) is 10%.
You should use the year three dividend in the constant growth model to find a future stock price at the end of year 2, P2.
Find the present value of that price, along with the present value of the first two divdends to solve for the price today.
Show you work below or to the right of the green column for partial credit.