Question: Solve the following problems. ( DO NOT use CHATGPT else will report to cheggs) (a) Burroughs Computers, has 7.5 percent coupon bonds on the market

Solve the following problems. (DO NOT use CHATGPT else will report to cheggs)

(a) Burroughs Computers, has 7.5 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8.50 percent, what is the current bond price?

(b) The next dividend payment by Mahalaxmi Mills Ltd. is expected to be $2.10 per share. The dividends are expected to maintain a 5 percent growth rate forever into the future. If the stock currently sells for $48 per share, what is the required return?

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