DuJCU UIT Juui unui JIJ, WI you LJJ u project. 4.(12 marks) Bond TTT has 10 years to maturity and has a coupon rate of 12%. Bond ZZZ is comparable in risk to BOND TTT, is trading at par, has 15 years to maturity has a coupon rate of 10%. If interest rates increase by 1.5%, what is the price impact on both stocks? Relate your observation to interest rate risk. Assume both are annual pay bonds. 5. (10 marks) Alex is assessing the price of Fortis. She expects Fortis to growth dividends at its historical rate of 4.5% per year over the next three years, and following that, she expects the dividend growth rate to steady to the industry average of 2%. If Fortis shareholders expect a return on equity of 8% per year and the annual dividend paid exactly one year ago was $4.75, what is Alex's per share estimate of Fortis' equity value? If the shares are currently trading for $97.05 per share, should Alex buy, sell, or hold the share