Please show the work.

1. A stock is expected to pay $0.90 per share every year indefinitely. If the current price of the stock is $18.60, and the equity cost of capital for the company that released the shares is 7.9%, what price would an investor be expected to pay per share five years into the future?

A. $18.22

B. $19.36

C. $11.39

D. $18.79

2. A $5,000 bond with a coupon rate of 5.1% paid semiannually has ten years to maturity and a yield to maturity of 6.7%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

A. fall by $277.36

B. rise by $277.36

C. fall by $332.83

D. rise by $332.83