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4a. Calculate the duration of the two bonds. Using the following information. Bond 1 Bond 2 Particulars Face value Coupon rate Years to maturity Redemption

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4a. Calculate the duration of the two bonds. Using the following information. Bond 1 Bond 2 Particulars Face value Coupon rate Years to maturity Redemption Value Current market price Yield to maturity 21,000 8% 7 31,000 1902.63 10% 31,000 Zero-coupon 7 31,000 3513.16 10% Suggest which is the better bond to invest basing your decision on the duration of bonds. A stock currently pays a dividend of 32 for the year. Expected dividend growth is 15% for the next three years, and then growth is expected to revert to 7% thereafter for an indefinite amount of time. The appropriate required rate of return is 10%. What is this stocks intrinsic value

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