$9.$ Bond A and Bond B both make interest payments annually, and have $$1,000$ face values. Bonds A and B also have identical coupon rates, and both have the same yield to maturity. The only difference between the two bonds is that Bond A will mature in five years, while Bond B will mature in seven years. Which of the following must be true about the relationship between the prices of the two bonds?

Bond A must have a higher price than Bond B$,$ since owners of Bond A will receive the large $$1,000$ face value payment at an earlier date than Bond B investors.

Bond B must have a higher price than Bond A$,$ since owners of Bond B receive a larger number of coupons $($i$.$e$.,$ interest payments$)$ than Bond A investors.

There is not enough information to know which bond is more valuable. However, if the bonds are premium bonds, then Bond A will be more valuable than Bond B$.$

There is not enough information to know which bond is more valuable. However, if the bonds are premium bonds, then Bond B will be more valuable than Bond A$.$

There is not enough information to know which bond is more valuable. Knowing whether these are premium or discount bonds does not help us determine their relative value if we do not know the exact yield to maturity.

$10.$ A fast$-$growing company is currently reinvesting all of its profits into new project $($that is$,$ it is retaining all of its earnings, and paying no dividends$).$ You expect that this company will maintain this high$-$growth phase, with no dividends, for the next ten years. Eleven years from now, you believe the company will pay its first dividend, of $$4\mathrm{.}00$ per share. Thereafter, you believe the company will maintain a $4\%$ rate of dividend growth forever. If the required return for this company$$s stock is $11\%,$ what would you be willing to pay for a share of this stock today?

$$12\mathrm{.}81$

$$18\mathrm{.}13$

$$20\mathrm{.}12$

$$36\mathrm{.}36$

$$57\mathrm{.}14$

$11.$ A stock market analyst, whose opinions you hold in high regard, has just released a report saying that she believes that a particular company$$s stock will reach a price of $$47\mathrm{.}50$ in two years. The stock just paid a dividend of $$3\mathrm{.}80$ per share. Based on your forecasts of the company$$s earnings $($and your assumption that dividends will grow at the same rate as earnings$),$ you have determined that dividends will likely grow by $15\%$ and then $18\%,$ in the next two years, respectively $($i$.$e$.$ the dividend in year $2$ will be $18\%$ larger than the dividend in year $1).$ Based on these estimates, if the stock has a $15\%$ required return what would you be willing to pay today for a share of the company$$s stock?

$$43\mathrm{.}11$

$$43\mathrm{.}62$

$$46\mathrm{.}42$

$$47\mathrm{.}42$

$$49\mathrm{.}59$