1. Zero-coupon bonds do not have which of the following risk types?
A. Inflation Risk
B. Reinvestment Risk
C. Interest Rate Risk
D. Maturity Risk
2. Investor's required rate of return on a stock is 11% and the current dividend is .76 per share. Beginning 3 years from now (end of year 3 / beginning of year 4) the dividend is expected to grow 5% per year in perpetuity. The stock is currently valued at $15.18 per share using the dividend discount model. What constant dividend growth rate is assumed for the first 3 years?
A. 5%
B. 10%
C. 11.52%
D. 9.45%