1. A firm is currently experiencing troublesome times. The last dividend paid was $4, but this is expected to decline at a rate of 6% per year. If investors require 10%, what will the stock price be in 2 years?
2. Find the yield to maturity of a bond having a 12% coupon, a market price of $894.04 and 10 years to maturity. Assume the bond pays interest semiannually.