Section II: Problems 1. (This question is not cumulative) [17 marks) a) What is the price of a zero coupon bond that will mature in 8 years and pay $1,000 at maturity if its YTM is 6 percent? b) What is the yield to maturity of a bond with the following characteristics? Coupon rate is 7 percent with semi-annual payments, current price is $1,050, four years until maturity. Write down the expression for YTM. No need to figure out the actual number for YTM.) c) What should be the price for a common stock paying $1.50 annually in dividends if the growth rate is zero and the discount rate is 10 percent? d) This morning a stock just paid a dividend of $0.9 and it has an annual dividend growth rate of 5%. The P/E ratio for this stock is 17 and EPS is $2. What is the stock dividend yield today