Solve the following questions:

1. A bond has 10 years term to maturity, 8% coupon rate and is sold for $1100. What is the yield to maturity?
2. A bond has 10 years to maturity, yield to maturity of 8.72%, a coupon rate of 8%. What is the price?
3. Microsoft pays annual dividend of $2.24 per share. The dividend growth rate in the past four years is 9.5% a year. Its cost of equity is 6.03%. What is the forecasted price of Microsoft?
4. For a level coupon bond, duration will always _____________ its time to maturity.