Question 1. Quick Silver Ltd is looking for financial investment in the securities market. Two investment options are available in different securities: Bonds and ordinary shares. Treasury bond: the bond is paying 10% coupon rate. Interest is paid semi- annually. The bonds have a face value of $1,000 and will mature 25 years from now. Commonwealth Bank ordinary share the share just paid a dividend of $6.50 per share. The Company Management agreed on steady growth of 5% in dividends and earnings over the foreseeable future. The required rate of return for shares of this type is 18%. Required: a) Compute the current value of the Treasury Bond if the YTM of the bond is 7% annually; b) Calculate the current value of Commonwealth Bank ordinary shares