$12$a$)$ A twenty$-$year $8\mathrm{.}50\%$ bond was issued ten years ago. Compute the Bond Price if it makes semiannual

payments and the yield to maturity is $7\mathrm{.}25\%.$

$12$b$)$ A company expects to pay its first dividend of $$0\mathrm{.}50$ a share in Year $4$ with annual dividend increases of

$2\mathrm{.}0$ percent thereafter. At a required return of $12\mathrm{.}0$ percent, what is the current share price?