1. Madsen Motors's bonds have 9 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9%; and the yield to maturity is 12%. What is the bond's current market price? Round your answer to the nearest cent.
2. The all equity financed American clothes company announces that they will pay a special dividend on July 1st 2018 of $0.40 per share. The dya of record. Your total wealth consists only of 1000 shares in the American Cothes stock that currently trades at $20 per share. What will ur total wealth be after the dividend is plaid? Assume no taxes.