2. (a) (b) A 5-year bond with a face value of 1000 has a coupon rate of 9%. The yield to maturity on this bond is 7% per annum. The coupons are paid annually. (Rounding to two decimal places) Required: i. What is the price of this bond when the bond is issued? (15 marks) ii. If the yield to maturity of the bond is 10% per annum, what is the price of the bond when it is issued? (10 marks) Teck company has announced a rights issue to raise $60 million for a new project. The current price is $50 per share with 6 million shares outstanding. If the subscription price is $40 per share, Required: i. What is the prospective price of Teck company after the rights issue? (15 marks) ii. What is the value of a right? (10 marks) Discuss the theoretical and practical problems of the Efficiency Market Hypothesis by drawing on the assumptions and empirical evidence. (500 words limit) (C) (50 marks) (Total 100 marks)