Mapipi and Associates is experiencing a period of abnormal growth. The last dividend paid by Mapipi was K5.95. Next year, they anticipate growth in dividends and earnings of 27% followed by negative 9% growth in the second year. The company will level off to a normal growth rate of 12% in year three and is expected to maintain a 12% growth rate for the foreseeable future. Investors require a 16% rate of return on Mapipi. Calculate the approximate amount that an investor would be willing to pay today for the two years of abnormal dividends. (10 Marks) 3. i. A 7% 8year bond with a par value of $100 is currently selling for $106.36. The first par call date is five years from now. Prove that the yield to first par call on a bond equivalent basis is 5.53%. ii. An investor bought a $1 000 par value bond on July 16, 2006, with coupon payments due on July 2 and January 2. The coupon rate is 30%. Calculate the accrued interest as at July 16. Assume a 30/360 day count convention. iii. Assume you bought a $1 000 par value Government T-Bond on July 16, 2018. The T-Bond matures on January 2, 2024 and has a coupon rate of 10% payable semiannually and a yield (discount rate) of 8%. Calculate the T-Bond's dirty price assuming an actual/365 day count convention. (10 Marks)