Question 3 Your grandfather is retired and living on his EPF savings and the dividends from savings. However, his dividend has dwindled to only 2 % a year on his $300,000 in savings. You have been thinking of advising him to purchase some corporate bonds to increase his income. Specifically, you have identified three bonds for him to consider. After looking at the bonds default risk, you have different yield to maturity for each of the bonds in mind. The following information relates to the three corporate bonds: Details Manor Resorts Fast Corporation Mines Entertainment Inc 7.5% 7.8% 7.975% Coupon interest rate Years to maturity Face value Bond rating 4 10 $1,000 17 $1,000 B $1,000 BBB The bond issues are currently selling for the following amounts: Manor Resorts Mines Entertainment Inc. Fast Corporation $1,020 $920 $1,035 Before recommending any of these bond issues to your grandfather, you perform a number of analyses. I Specifically, you want to address each of the following issues : Required: a) Calculate the yield to maturity for each of the bonds. b) Using your answers to (a) above, calculate the values of each of the bonds. (12 marks) (12 marks)