1. Anderson Motors, Inc. has just set the company dividend policy at $0.65 per year. The company plans to be in business forever. What is the price of this stock if
a. an investor wants a return of 3%
b. an investor wants a return of 8%
c. an investor wants a return of 10%
d. an investor wants a return of 15%
e. an investor wants a return of 18%
2. What is the price of a bond with a par value of $1,000, an 8% coupon rate paid annually, and a yield to maturity of 6% if the bond matures in 8 years?
$1,124.20
$1,136.03
$1,147.20
$1,157.74
$1,167.68