a. You hold a bond with a coupon interest rate of 8.00% and a face (par) value of $10,000. If the maturity date is 4 years and the market's required yield to maturity for similar rated debt is 6.00%, what is the value of this bond?

b. An ordinary share pays a $2.00 dividend at the end of last year and is expected to pay a cash dividend every year from now to infinity. Each year, the dividends are expected to grow at a rate of 5.00%. Based on an assessment of the riskiness of the ordinary shares, the investor's required rate of return is 12.00%. What is the value of this ordinary share?

c. REFeasibilty Ltd is an Australian real estate company. The financial manager is currently analysing two projects and evaluating the potential of the investment opportunity. The estimated initial investment outlay and after-tax cash flows (incremental) associated with each project are shown in the following table: