Alphonso Sharjah Inc has a 7% coupon bond outstanding that matures in 13.5 years. The bond pays interest semiannually. The company is wondering, what is the market price per bond if the face value is $1,000 and the yield to maturity is 14.78%? The company is also evaluating the impact of yield curve in a scenario of lower nominal interest rate. What could be the effect of lower rates on the future cashflows of the company? The company also just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2% annually thereafter. How much will one share of this stock be worth six years from now if the required rate of return is 14.5%? The CFO is worried about the pressing demands from the shareholders regarding the required rates of return, how would the growth rate of dividend be affected if the required return is also increased? Give the end value of every calculation with every step included.