25. What is the implicit (dollar) interest for the first year of an American Century bond currently valued at $635.66? Note: This American Century bond pays no coupons but will pay $1,000 when it matures in 21 years.

Multiple Choice

• $7.04

• $6.93

• $13.86

• $3.85

• $7.70

11.

Jeffrey Lash, an investor with a required rate of return of 11%, is looking to buy shares of GPB Capital a company that will pay its first dividend next year in the amount of $0.29 per share. During the following three years, GPB Capital expects to disburse dividends per share of $0.34, $0.49, and $0.79, respectively. Afterwards, GPB expect dividends will indefinitely grow at 2.4% annually. How much is Jeffrey Lash willing to pay today for one share of GPB Capital?

Multiple Choice

• $9.70

• $9.63

• $9.41

• $7.61

• $1.90