Question: question: 1 Example: a 2 year bond that has a par value of $1000, and semiannual coupon rate of 5%. The annualized yield is 7%.

question: 1

Example: a 2 year bond that has a par value of $1000, and semiannual coupon rate of 5%. The annualized yield is 7%. What is the price of the bond?

Question: 2

Gordon & Co.'s stock has just paid its annual dividend $1.10 per share. Analysts believe that Gordon will maintain its historic dividend growth rate of 3%. If the required return is 8%, what is the expected price of the stock next year?

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