i want to delete this question, i posted it a couple seconds ago by mistake.. i found the same question

Example: Suppose an investor is considering the purchase of a share of the Mining Corporation. The stock will pay a $3 dividend a year from today. This dividend is expected to grow at 10% per year for the foreseeable future. The investor thinks that the required return on the stock is 15%. What is the value of a share of Mining Company's stock? specifically how you would take advantage of this opportunity. If not, why not? Question 4 - Bonds (20 Marks) Suppose three bonds are currently traded in the market. Bond 1 is a pure discount (zero-coupon) bond that matures in one year, has a face value of $10,000, and a yield-to-maturity of 1.75%. Bond 21 maturing in two years with a face value of $10,000, is a coupon bond with annual coupons and 43 coupon rate. Bond 2 trades at par. Bond 3 is a pure discount (zero-coupon) bond that matures in three years, has a face value of $10,000, and has a price of $9,000. a. What is the term structure of spot rates (.e.ru, randra)? What are the yield to maturities of Bonds 2 and 3? Now suppose that the government is issuing a new level coupon bond, bond 4, which matures in three years, and has a face value of $10,000, annual coupons at 10% coupon rate. Suppose its price is $9,400. Can you make an arbitrage profit in this situation? If so, how? Describe your strategy carefully. What is the arbitrage profit? MGM 230 Page 3 of 4