Digi Berhad bond has a 10 percent coupon rate and RM1000 face value. Interest is paid semi-annually, and the bond has 20 years to maturity and 12% yield to maturity. 1. What is the bond value if its frequency of compounding is semi-annually? 2. What is the effective annual yield on the semi-annual coupon bond? 3. Explain the difference between coupon rate and the yield to maturity. 4. Assume that a Celcom Berhad experienced a supper-normal growth rate of 30% in the first 3 years and then return to its long-run constant growth rate of 6%. The current dividend is RM2 and the required rate of return is 13%. What is the value of the stock today?

5.Identify two assumptions of the Gordon Growth Model.