Q1)Calculate the yield to maturity (ytm) for the following bonds:

Bond 1: Par value $1000, seven years to maturity, coupon rate 6% (Market price =990)

Bond 2: Par value $1000, fifteen years to maturity, coupon rate 6.5% (Market price=1111)

Bond 3: Par value $2000, thirty years to maturity, coupon rate 7.5%( annual and semi-annual) (Market price=2010)

Q2) Stock A has a required return of 10 percent. Its dividend is expected to grow at a constant rate of 7 percent per year. Stock B has a required return of 12 percent. Its dividend is expected to grow at a constant rate of 9 percent per year. Stock A has a price of $25 per share, while Stock B has a price of $40 per share. What is the required return of each one of them and which one would you choose?

Q3) Calculate the value and the duration for the following bonds:

BOND	Years to maturity	Annual interest	Maturity value
ABC	10	$80	$1000
XYZ	15	$75	$1000

The required rate of return is 8%