1.The Christopher Cabinet Company has a $1,000 par value bond outstanding that pays annual coupon interest of $80 semi-annually. If the current yield to maturity on this bond is 10 percent, compute the current value of the bond if the maturity date is 20 years.

2.ABC Inc. just paid an annual dividend of $2.00 per share on its common stock. The investor's required rate of return on ABC's Common Stock is 13 percent. The firm expects dividends to grow at a constant rate of 5 percent (g). Evaluate the firm's current stock price (P0).

3. Consider that Camille's Jewelry Corporation recently paid an annual dividend of $4.00 per share on its common stock. Because of exceptionally positive operating results, the firm expects dividends to grow at a supernormal growth rate of 20% over the next four years. After the end of the four year supernormal growth period, dividend growth is expected to return to the firm's normal rate of 6%. The investors' required return for Camille's Jewelry Corporation common stock is 12%. Using the two-stage growth model solve for the firm's current stock price.