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Hope bonds have a coupon rate of 7% and mature in 7 years.Assuming semi-annual coupons with face value of $100, what is thevalue of this bond? Similar bonds yield 6%.a.The value of this bond is $39.54.b.The value of this bond is $106.58.c.The value of this bond is $105.65.d.The value of this bond is $94.54.Dewyco has preference stock trading at $50 per share. The nextpreference dividend of $4 is due in one year. What is Dewyco’s costof capital for preference share?a.The cost for Dewyco’s preference share is 12.5% per annum.b.The cost for Dewyco’s preference share is 9% per annum.c.The cost for Dewyco’s preference share is 8% per annum.d.The cost for Dewyco’s preference share is 20% per annum.What is the effective annual interest rate corresponding to anominal interest rate of 7.5% per annum, compounding daily (assume365 days in a year)?a.The effective annual interest rate is 8.10%.b.The effective annual interest rate is 7.79%.c.The effective annual interest rate is 7.5%.d.The effective annual interest rate is 7.46%