Six months ago you purchased a bond with 11years remaining until maturity, a coupon rate of 3.00% and a yield to maturity of 4.00% at the time of purchase. This morning you received a coupon, and then sold the bond at a yield to maturity of 4.80%. What is your rate of return from 6 months ago to today (expressed as an interest rate, not a dollar amount)?

B. It is January 1st. XYZ Inc., which pays annual dividends, had EPS at the end of this past year of $4.20 (the dividend based on these earnings was just paid). You expect EPS to grow at 25% per year for the next 2 years, and then slow to a constant annual growth rate of 6%. If XYZ maintains a dividend payout ratio of 40% and has a cost of equity capital of 14% (EAR), what should be the fair value of one share of its stock today (assume a new buyer receives their first dividend in 1 year)?