Question: Question 13 (10 points) [Exam 3 - Zero coupon bond] A Treasury zero coupon bond is currently selling for $700 and will mature in 26

Question 13 (10 points) [Exam 3 - Zero coupon bond] A Treasury zero coupon bond is currently selling for $700 and will mature in 26 years. The face value if $1,000. What is the annual yield to maturity if investor purchases this bond, assuming annual compounding? Instruction: Calculate the YTM in percentage and round to two decimal places. Do not include the percentage (%) sign. Question 14 (10 points) [Exam 3 - Stock valuation 1] AMZ Company common stock is expected to pay a dividend of $3.00 next year and maintains a growth rate of 7.5 percent per year indefinitely. If the required return on the stock is 13 percent, how much should investor pay for the stock now? Instruction: Round answer to the nearest integer (no decimal). Do not include $. positive (+), or negative (-) sign. Question 15 (20 points)

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