1. What is the price of a 3-year 6% semi-annual coupon paying bond if the expected yield to maturity is at 5.6%?
2. (2 pts) A 3-year 6% annual coupon pay bond is callable at $102.00 every year starting one year from today. What is the current price of the bond?
3. Given a 3-year 6% annual coupon paying straight-bond with yield to maturity at 5.6%. Calculate the option value if the equivalent putable bond is priced at $1,020.75.
4. Assuming that a company has a dividend growth rate of 5%, the discount rate is 8%, there are 15 years of annual dividends to be paid and the current dividend is 80p, what is the value of the companys stock, based on the constant dividend growth rate model?

9.00% 6.90% 5.00% 7.40% 3.25% 5.60% 4.3096 6.10% 4.75% 4.90% Year 1 Year 2 Year 3 Year 4