Question: Please help ASAP (10) 8. (A) Consider a bond that was issued in 2010. At the date of issue, the bond had a maturity 15

 Please help ASAP (10) 8. (A) Consider a bond that was

Please help ASAP

(10) 8. (A) Consider a bond that was issued in 2010. At the date of issue, the bond had a maturity 15 years, a coupon rate of 10% with semi-annual coupon payments, a face value of $10,000, and a bond yield of 12%. When it was issued, the price of the bond was $8,623.40. It is now 2020, and the bond has 5 years to maturity. The annual bond yield is now 6%. What is the current price of the bond? (B) Consider a common stock with the following expected dividends: $3 in one year (i.e., at t=1), $4 in two years (at t-2). $0 in three years (at t=3), $3 in four years (at t-4) and $5 in five years (at t=5). After t=5, the dividends will grow at 5% per year for two years (i.e., t-6 and t-7). After t=7, dividends will grow at a long-run growth rate of 2% per year, forever. The opportunity cost of capital is 14%. What is the price of the common stock

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