A. Xanth is growing its common dividend at 2% per year, it pays a $3 preferred dividend, and has issued a bond with 10 years to maturity. The bond pays a $100 annual coupon. Similar bonds yield 10% at present. What is the present value of the $1000 face value to be paid at maturity?

a. $ 1,000 b. $ 1080 c. $ 500 d. $ 386 e. none of these are within $100.

B. For the bond above in question A, what is the present value of just the coupons? a. $ 900 b. $ 500 c. $ 1,000 d. $ 614 e. none of these are within $100.