Q1 ) A 1000$ , 6% annual coupon treasury bond that is quoted in the newspaper at 103:5 Ask, coupon interest is paid semi-annually , it has been 130 days since the last coupon payment, half year is 182.5 days , find :

a) What is the accrued interest on the bond on the bond ?

b) If you are to buy the bond , what is the invoice price, how much would you pay for the bonds in other word ?

Q2 ) The Samis firm common stock most recent dividends were 2$ per share, dividends are to grow at 8% a year for 3 years (2016,2017,2018) , at the end of year 2018, dividends are to grow at 5% for the foreseeable future , required rate of return is 15% .

What is the shares true value now and that is at the beginning of year 2016 ?