4. Company A has a bond outstanding that pays a 7% coupon. The interest is paid semi-annually, and the bond matures in 10 years. If the market rate of interest on bonds of similar risk is 6.5%, what should company A's bond be selling for today? (5 Marks) 5. Company B has a bond outstanding that pays a 8% coupon. The interest is paid semi-annually, and the bond matures in 10 years. If the market rate of interest on bonds of similar risk is 6.5%, what should company B's bond be selling for today? If the bond can be called at price 1050 in 8 years, what is its yield to call rate? (10 Marks) 6. Company B has a bond outstanding that pays a 8% coupon. The interest is paid semi-annually, and the bond matures in 10 years. The company B's bond be selling at $980 ? What is its current yield? What is it capital gain or loss yield, if the bond can be sold at $990 in a year? (10 Marks) 7. Assume that the risk-free rate is 3.8% (T-Bill), the return on the market portfolio (S\&P 500 ) is 10.8%. Based on the historical data, A Inc. has a beta of 1.2 against the S\&P 500 return last ten years, What is its required rate of retum of A Inc