Please answer all the questions below.

(b) A zero-coupon bond matures in 10 years. The interest is compounded semi-annually and the face value of the bond is $1,000. The market interest rate for similar bonds is 3.25%. i. What is the value of this bond? [3 marks) ii. How many of these bonds need to be sold to raise $1.4m? [1 mark] ili. Does the bond sell at par, premium or discount? Explain. [1 mark] iv. If an investor purchases the bond now for $850 and holds it until maturity, what will be the investor's yield to maturity? [2 marks] v. If an investor purchases the bond now for $850 and then sells the bond after 5 years for $950, what will be the investor's realised yield? [2 marks] (c) For a rapidly growing Japanese company, the growth rate is projected to be 20% for the next two years and 10% for the following year. At the end of 3 years, the growth rate is expected to settle to 5% and remain so for the foreseeable future. The company has recently paid a dividend of 220 per share. Assume that the investors' required rate of return for the company's shares is 17%. i. Determine the value of this company's share. [3 marks] ii. If the market price of the share is 2,500 per share, is the share a desirable purchase? Explain. [1 mark]