Q1) ABC Company issued bonds on January 1, 2006. The bonds had a coupon rate of 6.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2021. What is the yield to maturity for these bonds on January 1, 2016 if the market price of the bond on that date is $1,020?

Q2) ACME, Inc. expects its current annual $4.50 per share common stock dividend to remain the same for the foreseeable future. What is the intrinsic value of the stock to an investor with a required return of 15%? Round to two decimal places.

Q3) ABC Company's common stock is expected to pay a $2.50 dividend in the coming year. If investors require a 16% return and the growth rate in dividends is expected to be 8%, what should the market price of the stock be? Round to two decimal places.