Question: 1.Current dividend = $1.80, required return = 11%, dividends are expected to grow at 8% annually for 5 years and followed by 0% growth in

1.Current dividend = $1.80, required return = 11%, dividends are expected to grow at 8% annually for 5 years and followed by 0% growth in year 6 to infinity. Find out the price of the share.

2. Face value of the Bond = $1000, Annual Coupon Payment = 10%, YTM = 12%, Current Price of the Bond = $950, Maturity = 10 years, Reinvestment Rate = 11%, what would be the Realized Compound Yield of this bond?

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