1. A 36-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 14%. What is the EQUIVALENT annual yield to maturity of the bond if the bond sells for $1,080?
2. Which of the objective of monetary policy would like that our central bank to focus in the coming years. explain in detail why.
3. The market capitalization rate (required rate of return) on the stock of Aberdeen Wholesale Company is 10% (constant growth stock). Its expected ROE is 12% and its expected EPS is $5.00. If the firm's plow-back ratio is 40%, its current stock price will be __________.