QUESTION IS ATTACHED HERE

PART 1.: Consider the two bonds described below: Bond A Bond B Maturity 1.5 years 20 years Coupon Rate 10% 6% Par Value Rs. 1,000 Rs. 1,000 If both bonds had a required return of 8%, what would the bonds' prices be? Are these bonds selling at a discount, premium, or par? PART 2: (a) A bond pays $l0 per year in interest (8% coupon). The bond has 5 years before it matures at which time it will pay $1,000. Assuming a discount rate of 10%, what should be the prioe of the bond? (b) A zero coupon bond has a par value of $1,000 and matures in 20 years. Investors require a 1.0% return on these bonds. For what price should the bond sell? (CjOneyear Tbill rates are 2% currently. 1f interest rates are expected to go up after three years by 2%every year, what should be the required interest rate on a 10-year bond issued today? Assume that the expectations theory holds. PART 3: BC W; latest annual dividend of $2.25 a share was paid yesterday & maintained its historic 7% annual rate of growth. You plan to purchase the stock today because you believe that the dividend growth rate will increase to 8% for the next three years & the selling price ofthe stock will be $40 per share at the end ofthat time. a) How much should you be willing to pay for GCC stock if you require a [2% return? b) What is the maximum price you should be willing to pay for GCC stock if you believe that the 8% growth rate can be maintained indenitely, and you require a t2% return