1. You just purchased a share of SPCC for $95. You expect to receive a dividend of $3.00 in one year. If you expect the price after the dividend is paid to be $111.00, what toal return will you have earned over the year? What was your dividend yield? Your capital gain rate?
2. A ten year bond with a coupon rate of 13% (payable annually) and a face value of $1000 is selling for $1392.50 today. What is the bond's yield to maturity?
3. Two years ago, you bought a fifteen year bond at its face value of $1000. The coupon rate on this bond is 9%, payable annually. Today (after receiving the second annual coupon payment), the current yield on the bond is 7.5%. What is the value of the bond today?