17.A company wants to raise $600,000 by issuing zero coupon bonds. The bonds have a face value of $1,000 and will mature in 8 years. The issue price gives potential investors a yield to maturity of 3% p.a. (nominal). Assume comparable-risk coupon bonds normally pay semi-annual coupons

Calculate the issue price per bond. (Round your answer to 2 decimal places. Do not include the $ symbol. Do not use comma separators. E.g. 1234.56) (2 marks)

How many bonds should the company issue to raise enough money? (Do not include unit. Do not use comma separators.) (1 mark)

18. A preference share is going to pay a dividend of $2 in one year. Use the dividend discount model (DDM), calculate the expected share price in three years if the rate of return is 7% p.a. (Round your answer to 2 decimal places. Do not include the $ symbol. Do not use comma separators. E.g. 1234.56)

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