1) Consider the three bonds having payments as shown in the table below. They are traded to procure a 15% yield. Finc 2) (a) The current stock price is 730 for Company XYZ, and the risk-free interest rate is 7.5% compounded continuously. A two month (European) put option with an exercise price of 500 has a price (premium) of 10, but due to low liquidity, there was no listed quote for the two months, 500 call. What is a good estimate of its value? (b) A 1,000 par value ten-year bond with coupons at 8% convertible semiannually will be redeemed for R. The purchase price is 800 and the present value of the redemption value is 301.51. Prove that the value of R is 799.89