Question 7 Grand Adventure Properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 11.2 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000? Question 8 Deluxe Company expects to pay a dividend of $2 per share at the end of year 1, $3 per share at the end of year 2, and then be sold for $32 per share at the end of year 2. If the required rate of return on the stock is 15%, what is the current value of the stock? Question 9 Suppose you are a stock analyst at Goldman Sachs. You forecast that Paddy plc will pay dividends of $2.50, $2.75, and $2.25 at the end of each of the next 3 years. It is expected that thereafter the firm will sustain a long-run rate of growth of 4.5%. The appropriate discount rate for Paddy is 10%. Based on your forecasts, what is the fair price for Paddy