You are purchasing a 15-year, zero-coupon bond. The yield to maturity is 6.85 percent and the face value is RM1,000. What is the current market price of the bond?

a.321.50

b.370.15

c.408.18

d.406.67

ABC Company just paid a dividend of RM3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate to 20 percent annually for the next 2 years. After this time, growth is expected to return to the long-run constant rate of 5 percent. If the required rate of return on this stock is 11 percent, what should the market price be today?

a.32.72

b.75.60

c.68.11

d.83.52