Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that dividends will increase at a rate of 5% per year indefinitely. If the last dividend was $1 and the required return is 20%, what is the price of the stock? Suppose Royal Bank were to issue a $1,000 bond with ten years to maturity. The Royal Bank bond has an annual coupon rate of 5.6%. Suppose similar bonds have a yield to maturity of 7.6 percent. What is the market value of the bond? Suppose we were interested in a six-year, 8 percent coupon bond (i.e. annual coupon rate is 8 percent). The par value is $1,000. A broker quotes a price of $955.14. What is the yield to maturity on this bond?