Example 1: ABC invested recently in a 3 years bond with coupon rate of 8% received annually. The market's required rate of return is 7% per year. What is the value of this bond? Example 2: ABC invested recently in a 4 years bond with coupon rate of 9% received semi-annually. The market's required rate of return is 11% per year. What is the value of this bond? Example 3: You are interested in investing in a common stock paying a $1.5 dividend at the end of every year from now to infinity. Each year, the dividends are expected to grow at a rate of 7%. Based on an assessment of the riskiness of the common stock, the investor's required rate of return is 12%. What is the value of this common stock? Example 4: You are interested in evaluating a preferred stock that pays an annual dividend of $4.00 per share, does not have a maturity date, and on which the market's required yield or promised rate of return for similar shares of common stocks is 7.0%. What is the value of this preferred stock