Mrs. Linda, CFA, is a fixed income analyst. She is currently analyzing three bonds (Bond A01, Bond B02, and Bond C03). She strongly believes that the appropriate market bond yield is 8 percent per annum.

	bond A 01	Bond B02	Bond C03
Face value	500000	1000000	2000000
Issued	1-July 2020	1 July 2020	1July 2020
Maturity	1 July 2030	1 July 2030	1 July 2030
Coupon Rate	6 %	8%	10%
Coupon Payment	Quarterly	Semi anuall	anuall

Price

420.000.000

985.000.000

2.500.000.000

Mr. Dimas, CFA, is a security analyst. He is currently analyzing three shares (ABC007,DEF008, and XYZ009). He strongly believes that the appropriate required rate of equity return is 13 percent per annum. He documents the following information:

	ABC 007	DEF 008	XYZ009
Just Paid Devidend	1.000	500	0
First Devidend Growth	3.00%	10.00%	0.00%
Second Devidend Growth	3.00%	5.00%	0.00%
First Growth Years	1 to 5	1 to 3	N/A
Second Growth Years	5 to 100	4 to 10	N/A
Price	15.000	3.000	6.700

Required: a) Evaluate the potential mispricing of those three share and bonds!