1. Is the use of currency derivatives advisable or are they purely speculative instruments?
2. Groupong Inc. recently paid a $2.78 annual dividend on its common stock. This dividend increases at 3.50 percent per year and the stock currently sells for $38.30 a share. What is the rate of return?
3. A bond pays an annual coupon of $100, with the first payment arriving in one year. The face value is $1000, and the term of the bond is 30 years. If the yield-to-maturity is 6%, what is the price of the bond?