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1. Calculate the price of a bond with Face value of bond is$1,000 and:a. Bond yield of 8.4%, coupon rate of 7% and time to maturity is5 years. Coupon is paid semi-annually (Bond 1)b. Bond yield of 7%, coupon rate of 8% and time to maturity is 4years. Coupon is paid semi-annuallyc. Calculate the price of Bond 1 right after the 5th couponpayment.2. Arcarde Ltd issues both ordinary shares and preference sharesto raise capital, in which 500,000 ordinary shares have been issuedat the price of $10 and 100,000 preference shares with a par valueof $100.a. Company promises to pay an annual dividend rate of 6.5% pershare for its preference shares. If similar investment has a rateof return of 10% p.a, what is the fair price of Arcarde’spreference share?b. Company also plans to pay dividend for its ordinary shares asfollow: Y1 (next year): $0.8; Y2: $1; Y3: $1, after year 3, thedividend will growth at the rate of 3% and company’s rate of returnis currently 9%, what should be the fair price of each ordinaryshares?Show all working out and equations