1.American Siesta Inc. bonds have a coupon rate of 10% and pay coupon bi-monthly.The bonds have 20 years remaining to maturity and are selling for $1,112.60.What is the capital gain yield of the bonds?

2.COM-EA Inc. has been maintaining growth rate of 5% in its dividends, which has been expected to continue indefinitely.The company just paid a dividend of $4.00 per share and its stock is priced at $100 per share.

Suppose, just after a dividend per share of $4.00 is paid, an economic shock suddenly hits, and its growth rate of dividend instantly decreases to 3% and the required rate of return on the stock becomes 2-percentage-points greater than now ( for example, if the pre-shock required rate is 4%, then post-shock rate would be 6%).

What would be the stock price?

3.How many years will it take for $2,000 to grow to $5,000 at a rate of 3% compounded every hour(Note: There are 365 days in a year)?