For the following problems show your steps if using a financial calculator or upload the excel spreadsheet if using excel.

1. You just purchased a $1,000 semiannual corporate par value bond with a 10 percent coupon rate and a life of 20 years. The bond has four years remaining until maturity, and the yield to maturity is 12 percent. How much did You pay for the bond? Is it a premium or discount bond?
2. A $1,000 par value bond, paying $50 semiannually, with an 8 percent yield to maturity and five years remaining to maturity should sell for how much?

1. The earnings of Best Forecasting Company are expected to grow at an annual rate of 14% over the next 5 years and then slow to a constant rate of 10% per year after that. Best currently pays a dividend of $0.36 per share. What is the value of Best stock to an investor who requires a 16% rate of return? If stock has a market price of $15, do you buy?