1. You just purchased a bond that matures in 15 years. The bondhas a face value of $1,000 and has an 8% annual coupon. The bondhas a current yield of 8.37%. What is the bond's yield to maturity?Round your answer to two decimal places.
2. Boehm Incorporated is expected to pay a $2.60 per sharedividend at the end of this year (i.e., D1 = $2.60). The dividendis expected to grow at a constant rate of 10% a year. The requiredrate of return on the stock, rs, is 17%. What is the estimatedvalue per share of Boehm's stock? Round your answer to the nearestcent.
