GS’s stock is currently trading at $80 per share when it pay…

GS’s stock is currently trading at $80 per share when it pays all earnings as a dividend of $8, but GS is evaluating another potential payout policies. Under the new option, the firm will pay a dividend of $5 for three years (starting next period), and then pay a dividend of $15 which will grow at 2% forever. Identify the correct formula to price the stock under the new option:

You purchase a bond with a Par value of $1,000, a coupon rat…

You purchase a bond with a Par value of $1,000, a coupon rate of 4% (paid annually), and a maturity of 4 years for $1,037.17.  Immediately after receiving your second coupon, interest rates rise to 6%. You become nervous about further rate increases and consider selling the bond. Determine the price at which you can sell the bond if you sell it exactly halfway between years 2 and 3. Answer in whole number form to two decimal places (e.g., 12.65 not 13).