1. How much should you pay for a bond that pays a coupon of 7%? The bond has a par value of $1,000 and will mature in 8 years. ( Round to the nearest dollar)

2. Huan Zhang bought a 10-year bond that pays 8.25% compounded semiannually for $911.10. What is the yield to maturity on this bond if the face value is $1,000?

3. You are interested in investing in a company that expects to grow stability at an annual rate of 6%for the foreseeable future. The firm paid a dividend of $2.30 last year. If your required rate of return is 10%, what is the rest you would be willing to pay for this stock? ( round to the nearest dollar)

4. Kathleen Dancewear Co. has bought some new machinery at a cost of $1,250,000. The impact of the new machinery will be felt in the additional annual cash flows of $375,000 over the next five years. What is the payback period for this project? If its acceptance periods is 3 years, will this project be accepted?