What is the market value of a bond that will pay a total of 40 semi-annual coupons of $50 per period, over the remainder of its life? Assume the bond has a $1,000 face value and an 14% yield to maturity: A. $733.36 B. $849.54 C. $1,145.90 D. $1,186.93 E. $1,235.62 Suppose that IBM has stocks with expected dividend of $10. The company is expected to grow at the rate of 5% and the required rate of return of stocks for the company is 15%. If BMI did not re-invest, then EPS = $12. Price of the IBM stock is then:

A $102.25

B $120.50

C $100.00

D $106.25

E $132.50