1. The annualized rate of return on a particular money market instrument is 3.75%. The face value is $200,000 and it matures in 51 days.

• What is its price?
• What would be the price if it had 71 days to maturity?

2. ATI Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 23% for the next seven years and then level off to a growth rate of 6% indefinitely. Assuming that the required return on this security is 12% determine an estimate of the stock's price for today.

3. Consider the following security information for four securities making up an index:

Table

Security Components of a Hypothetical Index(security prices in USD)