1. Find the duration of a zero coupon bond that matures in 16 years and has a 7% yield to maturity. Round intermediate steps to four decimals and your final answer to the nearest whole year. Do not use words when entering your response.
2. Patriot, Inc. has just paid a $2.00 annual dividend on its common stock. The dividend is expected to grow at a constant rate of 6% per year indefinitely. Based on market risk conditions and Patriot’s beta value, the required rate of return on Patriot’s stock is 13%. Calculate the current value of Patriot’s stock.