Consider the following two financial assets:

A being an ordinary share that is expected to pay a dividend of 3 next year with dividend growth expected to be 5% per annum thereafter

B is a corporate bond with an annual coupon rate of 8%, a par (face) value of 100, and a maturity of 5 years. If the required return on similar UK equities is 8% and on the similar UK bonds are 7%

Calculate the value of the UK stock and the UK bond. Explain the duration of a bond. Using the data given above, calculate the duration of the corporate bond.