SECTION II: Points assigned to each problem are duly noted. This section consists of 14 problems for a combined total of 80 points. relevant formulas and fully document your answer with numbers to be eligible for full credit. You must neatly show your work including all Problem 1. CIR, Inc. has a 12 percent coupon bond on the market with 8years remaining until maturity. The bond makes semi-annual payments and the face value is $1,000. If investors require a 16 percent yield, what is the current bond price? (5 points) Problem 2. A bond with face value $1,000 has 9 years until maturity, a coupon rate of 6 percent, paid annually and a yield to maturity of 12 percent. What is its current yield? (5 points) Problem 3. Bonds issued by the Etling Corporation have a price of $1075.36 and a coupon rate of 9 percent which is paid annually. The bonds will mature in 12 years and the face value is $1,000. What is the yield to maturity? (5 points) Problem 4. Stability Corporation's dividend is expected to be $3.40 next year. Its current stock price is $68 per share. The company is a constant growth firm. If investors require a return of 11 percent on this stock, what do they think Stability's growth rate will be? (5 points)