1) Common stock: Dividend = $1.26, price now = $72.56, price expected in one year = $82.50. Find total percent return. 2. Bond: Par = $1,000, coupon rate = 7%, 30-year bond is 14 years old, current price = $1,120.00. Find current yield and yield-to-maturity.

1.% return=(End value-Beginning value+Dividend)/Beginning value  

=(82.5-72.56+1.26)/72.56

=15.44%(Approx)

2.Annual coupon=1000*7%

=70

Current yield=Annual coupon/Current price

=70/1120

=6.25%

Time to maturity=(30-14)=16 years

Approx Yield to maturity=[Annual coupon+(Face value-Present value)/time to maturity]/(Face value+Present value)/2

=[70+(1000-1120)/16]/(1000+1120)/2

=5.83%(Approx)