1. A 10-year bond pays coupon semiannually and has a $1,000 face value. Its yield to maturity is 4% and the coupon rate is 5% per year. Please calculate the bond duration (measured by years) by using both (1) Duration function and (2) formula.?
2. Shidao Corp. is planning to pay an annual dividend of $2.08 a share on their common stock for the next period. The company adheres to a constant rate of growth dividend policy and offers a 4% growth rate in dividends. What will one share of Shidao common stock be worth ten years from now if the discount rate is 8 percent?