Company Z-prime's earnings and dividends per share are expected to grow by 3% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $3, the market capitalization rate is 11% and next year's EPS is $10. What is Z-prime's stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price A government bond matures in 7 years, makes annual coupon payments of 5.6% and offers a yield of 3.6% annually compounded. Assume face value is $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. Suppose that one year later the bond still yields 3.6%. What return has the bondholder earned over the 12-month period? Rate of return % b. Now suppose that the bond yields 2.6% at the end of the year. What return did the bondholder earn in this case? Rate of return %