a) Adam PLC wants to expand its investment portfolio and currently evaluating the following 2 investment options. Option 1 $1000 face value bond from Company X that has 13% coupon rate. As per the bond indenture, this semi-annual coupon bond will mature in 15 years. The required rate of return for this bond is 12% per annum. Option 2 Ordinary shares from Company Y. The company has just paid a dividend of $7 per share. The expected dividend growth rate is 9% and the required rate of return for shares of this type is 15%. As a financial advisor to Adam PLC, you are required to answer the following questions:

i. Calculate the current value of the bond.

ii. Calculate the current value of company Ys ordinary share.