QUESTION 1 Rico has one share of stock and one bond issued by the Island Adventure Company. The total value of the two securities is $1,080. The bond has a YTM of 9.6 percent, a coupon rate of 8.8 percent, and a face value of $1,000 pays semi-annual coupons with the next one expected in 6 months and matures in 6 years. The stock pays annual dividends and the next dividend is expected to be $12.30 and paid in one year. The expected return on the stock is 17.0 percent. What is the price of the stock expected to be in 1 year? a. $135.55 plus or minus 50.10) b. $109.54 (plus or minus 50.10) $123.25 plus or minus 50.10) d. 581.30 (plus or minus 50.10) e. None of the above is within $0.10 of the correct