Question 4: Total 25 Marks Three years ago Pacific Ocean plc built a hotel in its home country costing $6.4 million. To finance the construction of the factory, Pacific Ocean plc issued Swiss Franc (CHF) denominated bonds in Switzerland. Interest rates at the time in Switzerland were historically low. The foreign bond issue raised 8 million Swiss Francs and the exchange rate at the time was Usd 1 = CHF 1.25. Each foreign bond has a par value of 1000 francs and pays interest in francs at the end of each year of 3.4 %. The bonds will be redeemed in five years' time at par. The current cost of debt of Swiss Franc-denominated bonds of similar risk is 5%. REQUIRED: a) Calculate the current market value of each bond. [7 marks] Please provide the answer here; you may increase space where necessary b) Calculate the current total market value in Swiss Francs) of the foreign bonds. [3 Marks] Please provide the answer here; you may increase space where necessary