Question Fourteen a) The Salem Company bond currently sells for 955 has a 12% coupon interest rate and a /1,000 par value, pays interest annually, and has 15 years to maturity. (i) Calculate the yield to maturity (YTM) on this bond. (ii) Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond. b) Calculate the value of a 5,000-par-value bond paying quarterly interest at an annual coupon interest rate of 10% and having 10 years until maturity if the required return on similar-risk bonds is currently a 16% annual rate paid quarterly. c) Perry Motors' common stock just paid its annual dividend of 1.80 per share. The required return on the common stock is 14%. Estimate the value of the common stock under each of the following assumptions about the dividend: (i) Dividends are expected to grow at an annual rate of 0% to infinity. (ii) Dividends are expected to grow at a constant annual rate of 5% to infinity. (iii) Dividends are expected to grow at an annual rate of 5% for each of the next 3 years, followed by a constant annual growth rate of 4% in years 4 to infinity