Millennium Chemist Ltd. issued a bond that has 14% coupon rate, paid semi-annually. The bond has a face value of $1,000 and will mature 10 years from now. The company has just paid a dividend of $6.50 per its ordinary share. The company is forecasted to maintain a steady growth of 10% in dividends over the foreseeable future. The companys management is considering the two following projects with the same initial investment: Year Project 1 Project 2 0 $78,500 $78,500 1 $43,000 $21,000 2 $29,000 $28,000 3 $23,000 $34,000 4 $21,000 $41,000 Required: a) Compute the value of Millennium Chemists bond if the required rate of return in bond market is 12%. (4 marks) b) How much would investors pay for the companys ordinary shares if the required rate of return for shares of this type is 15%? (3 marks) c) Which project should the company choose, using NPV method if the required rate of return is 11%?