a) At the time of a bond issued, Investor A paid $1,000 to buy the 10-year 6% semiannual coupon bond with par value of $1,000. Three years later, Investor A sold the bond to Investor B, realizing a nominal annual rate of return of 8.6%. Investor B held the bond for one year and sold the bond to realize a nominal annual rate of return of 9.2%. What was the market interest rate for the bond at the time the bond was sold by Investor B? (10 marks)

(b) A company plans to pay dividends on its stock every six months. In the first year, the stock will pay a mid-year dividend of $1, and a year-end dividend of $1.10, which is 10% higher than the mid-year dividend. In the subsequent years (and it continues perpetually), the mid-year dividends will grow at 5% annually, while the year-end dividend in a year will always be 10% higher than the mid-year dividend in the same year. If the required (nominal) rate of return for the stock is 12%, what is the estimated intrinsic value of this stock?

ONLY NEED PART B ANS IS 29.35, I already have the worked out answer key but I do not understanding the working thus please answer this part with simplified working with detailed explanation

-Company FM-Perfect is a corporation with current capital consists of 50% debt and 50% common equity. The companys 9% annual coupon bond is trading at par and its stock has a beta value of 1.5. The government has a 40% flat tax rate on corporations. (a) Given that the risk-free interest rate is 4% and market risk premium is 15%. Applying CAPM and calculate companys current weighted average cost of capital

DO NOT SOLVE, just want to check why is rd 9 percent, i know thats the only value left after substitution but not sure why.