Question #$1$

A $5\%$ coupon rate matures in $7$ years. The face value of the bond is $$1000,$ the expected return is $6\%$ assume annual compounding. What is the current value of the bond?

Question # $2$

A broker purchases a stock that pays a $$1\mathrm{.}15$ annual dividend at a price of $$16\mathrm{.}00.$ The Broker expects a $15\%$ rate of return. What is the total actual return if this broker sells this stock after one year for $$19\mathrm{.}00$