5

a) Lets say Tigress Productions is currently expected to pay $2.78 as a dividend one year from now, and that the dividend payment will grow 4.32% annually. Then, how much will the dividend grow to 6 years from now?

b) What is the price of a 5.72% annual coupon bond with a face value of $1,000 and a maturity of 26 years? The markets YTM on a comparable risk and term bond is 5.8%.