(a) John has just bought an 8% bond that pays semi-annual coupons with $1,000 face value and 8 years to maturity. i) If the yield (APR) of the bond was 10%, what was its purchase price? (3 marks) ii) If the bond's YTM (APR) drops to 6% one year later and John sells it immediately after receiving the coupon, calculate the capital gains yield. (5 marks) iii) Couldthetotalyieldbecomputedasthesumofthecurrentyieldandthecapitalgainsyield? Explain. (3 marks) (b) UnicornLtd.hasjustdistributedadividendof$5.Itisexpectedthatthecompanywillincrease its dividend by 8% in the coming year, and 6% in the second year. After the second year, the company will maintain the dividend growth rate at 2% per year forever. How much would Stock Unicorn be worth today if its yearly required rate of return is 4%? (9 marks)