$1.$ A long$-$term bond has $20$ years to maturity, and coupon rate of $6\%.$ The bond makes semi$-$annual coupon payments and has a face value of $$1,000.$ If the yield to maturity on these bonds is $7\mathrm{.}2\%,$ what is their current price?

$2.$A stock currently costs $$27\mathrm{.}51,$ and is expected to pay a dividend next year of $$2\mathrm{.}10$ per share. Over the past several years, these dividends have been growing at a rate of $3\mathrm{.}5\%$ per year, and this dividend growth rate is thought to be sustainable for this company over the long$-$term. Given these assumptions, what would be the total return that an investor who just purchased this stock would expect over the upcoming year?

$3.$Three years ago, the municipal government of San Diego issued bonds with a maturity of five years. At the time they were issued, the bonds sold for exactly their face value of $$1,000$ and had a yield to maturity of $7\%.$ Since that time, interest rates have gone up$,$ and yields on these bonds have consistently been $1-2\%$ higher than they were initially. If the city of San Diego wants to issue new bonds that mature at the same time as these older bonds $($that is$,$ they will mature in two years$)$ and they want the price at the time of issue to be exactly equal to the $$1,000$ face value, which of the following must be true?

The coupon rate on these newly issued bonds must be higher than $7\%$

The coupon rate on these newly issued bonds must be lower than $7\%.$

The coupon rate on these newly issued bonds must be exactly equal to $7\%.$

The coupon rate on these new bonds is unknown but must be exactly equal to the coupon rate on the bonds that were issued three years ago.

The coupon rate on these new bonds is unknown but must be lower than the coupon rate on the bonds that were issued three years ago.