a) A zero coupon bond has a par value of $1,000 and matures in 25 years. Investors require a 6 % annual return on these bonds. For what price should the bond sell? b) Skandia Corporation just paid their annual dividend of SEK 5 a share. Skandia's policy is to increase the dividend by 4% annually. How much are you willing to pay today for a share of this stock if you require a 15% rate of return? c) A company has identified the following three mutually exclusive projects Year Cash flow (A) in Cash flow (B) in Cash flow (C) in Cost 0 -1000000 -1000000 -1000000 1 220 000 210000 130 000 N 350 000 210000 forever 3 420 000 210000 4 480 000 210000 5 0 210000 ON 0 210000 7 0 210000 8 0 210000 9 0 210000 10 0 210000