Please answer the following 3 problems:

Q1

A Japanese company has a bond outstanding that sells for 88 percent of its 100,000 par value. The bond has a coupon rate of 4.7 percent paid annually and matures in 18 years.

What is the yield to maturity of this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Yield to maturity

%

Q2

Watters Umbrella Corp. issued 30-year bonds 2 years ago at a coupon rate of 9.2 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

YTM

%

Q3

The Starr Co. just paid a dividend of $1.50 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Investors require a return of 10 percent on the stock.

What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current price

$

What will the price be in three years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$

What will the price be in 10 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$