5.) Company Z-primes earnings and dividends per share are expected to grow by 4% a year. Its growth will stop after year 4. I year 5 afterward, it will pay out all earnings as dividends. Assume next years dividend is $9, the market capitalization rate is 9%, and next years EPS IS $14. What is Z-prime stock price?

6.) You have estimated spot rates as follows: r1=4.2%, r2=4.7%, r3=5.3%. Calculate the yield to maturity of a 3 year, $1000 bond, that pays annual coupons based on a coupon rate of 6.0%