1. Suppose You're given with the following information for some assets ; a 12 - Year 4. 2 4/0 - coupon bond of semi- annual coupon payment with face value as &], dun , a common stack Of $3.50 expected dividend with 3.5%'s growth rate currently . Both bond and Common Stock are issued by Company MIGHT . Answer the following questions . a] Suppose the Yield to maturity ( that is , the discount rate ) for the band is 10%6 , what is the present value of this coupon bond ? Is it a discount bond ? Why ? What if the discount rate 15 49/} } bij Suppose the bond is in fact , callable . That is , the film may repurchase it with the call price as $945 and the bond is callable at the end of year 4 , what is the yield to call for this bond if the current bond price is $8 ? ? ? ! That is , the discount rate for the bond if you choose to be called . Use IRR function in EXCEL for this question) . [ ] Suppose the stock price is $23. 12 per share right now, and assuming the capital market is efficient , what is the required rate of return for the stock ?" What are the assumptions You have for this present value mode !' ?" I Suppose the bond is convertible . That is , at the end of the and year after issuance . the holder of the band has the right to convert the bond with I to 6 ratio toward Company Meckl's common stock . Would you possibly convert the band at the end of 4" year if based on the above information in a ] and [ ] ?" ` Why the so - called " fair value " of financial asset is represented by the present value of future cash flows of financial asset?"