Two parts please review

1. 1a. Compute the price of a 3.75 percent coupon bond with 18 years left to maturity and a market interest rate of 4.5 percent. (Assume interest payments are semiannual.)

1. 2. A 4.25 percent coupon bond with 13 years left to maturity is offered for sale at $1,075.  What yield to maturity is the bond offering? (Assume interest payments are semiannual.)

1. 3. Financial analysts forecast Company A's growth rate for the future to be 5 percent.  The most recent dividend was $0.78.  What is the value of Company A stock when the required return is 8 percent? 

1. 4. Company B recently paid a $0.64 dividend. The dividend is expected to grow at a 7 percent rate. At a current stock price of $54, what is the return shareholders are expecting?  

1. 5. Consider the following annual stock returns for the Ace Company and the King Company.

Create a 750-900 word report, and include the following:

• Explain the relationship between risk and return
• Identify an example of risk and return. 
• Explain which is more risky bonds or common stocks.
• Explain how understanding risk and return will help you in future business ventures.

Format your assignment consistent with APA guidelines.