a. A bond with a 10% annual coupon rate, payable semiannually, has a clean price of $1,362.50. On the day you buy it, the next coupon is due in two months. How much do you pay for this bond? Assume a par value of $1,000.

b. A stock currently sells for $48 per share. The market requires a return of 10.5 percent on the firm's stock. If the company maintains a constant 3 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?