Question: ( b ) GKH Software ( Tanzania ) Limited is a company listed in Tanzania and has an 8 percent coupon bonds on the market

(b) GKH Software (Tanzania) Limited is a company listed in Tanzania and has an 8 percent coupon bonds on the market with 12 years to maturity. The bonds make semi-annual payments and currently sell for 108 percent of par. What is the current yield on GKHs bonds? What is the yield-to-maturity?
(c) Ten years ago Malingumu Company Ltd began manufacturing and selling handheld television sets. Dividends are currently 150 shillings per share having grown at a 15 percent compound annual rate over the past 5 years. That growth rate is expected to be maintained for a period of three years from now, after which dividends are expected to grow at half that rate for another three years. Beyond that time, Malingumus dividends are expected to grow at 5 percent per year indefinitely. What would the current price of a share of Malingumu be if your required rate of return is 18 percent?

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