QUESTION 1: (a) If a coupon bond of 15 years pays an 10.7% coupon and the prevailing discount rate is 9.6%, compute its current price. Is this a discount or premium bond? b) Assume the bond in (a) is a semi-annual coupon bond. Using the other information in (a), compute its price. c) Common shares of Linux Ltd. will grow at 13.21% for three years and 9.3% for another two years. The growth rate will eventually drop to 7.5% and remain constant thereafter. The company just paid a dividend of GH 1.01. If the cost of equity is 11.1%, compute its price. d) What is the market value of a $1,000 face-value bond with a 12 percent coupon rate when the market's rate of return is 8 percent?