Problem 1: (6 marks) The North Life Corp. issued a 30-year bond 14 years ago with a face value of $1,000 and a coupon rate of 8% (semi-annual payments). The bond is currently selling for $728. What is the yield to maturity to an investor who buys it today at that price? Problem 2: (16 marks) Four and a half years ago, you purchased at par a 10-year 6% coupon bond that pays semi-annual interest. Today the market rate of interest is 4%, and you are considering selling the bond. a. What was the market rate of interest at the time you purchased the bond? b. Suppose you wish to sell the bond today i. How much should you sell the bond for? ii. What is the quoted price of the bond? iii. What is the current yield on the bond? C. iv. What will be your annual holding period return on the bond? Suppose your friend offers you a price of $1125 for the bond today. Would you be willing to sell the bond to her? Explain your answer. Problem 3: (8 marks) Super Growth is a relatively young tech company. It is going through a period of high growth and has thus decided not to pay any dividends until the end of year 6. At the end of year six, it will pay a dividend of $2. This dividend will grow at a rate of 25% for the next four years. After that, Super Growth pledges to maintain a constant 5% growth rate in dividends, forever. How much will you pay for a share of Super Growth today