a. 2. lleri Computer has 10 percent coupon bond on the market with 15 years to maturity with a par value of $1,000. The bond makes semi-annual interest payments. The required rate of return on this bond is 12% per year. Calculate the current market value of this bond. b. Find the current yield of the bond. c. If next year's rate of inflation is lower than expected, briefly discuss what you would expect to happen to the price of the bond? Why? d. If the price of this bond increases to $668.5 one year later, what is the expected rate of return of the new investor in this bond (i.e., its yield to maturity)? What is the rate of return of the investor who purchased this bond one year ago and sold it after receiving the second coupon payment? 3. Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, dividends are expected to grow at a 25% rate for three years, then the competition will drive down profit margins and the sustainable growth rate will decline to a constant rate of 5%. The next year's dividend is expected to be $4.00. Suppose that the stock's required return is 13%. a. What is the expected price of Better Mousetraps stocks at the end of year 3? b. What is the expected price of Better Mousetraps stocks today? c. If the stocks of Better Mousetrap stocks are selling at the market for $65, will you buy this company's stocks? Why or why not