Question ID: 419 This question is worth 10 marks in total. This is a written calculation question and you should perform the necessary calculations/working on paper to later be scanned and uploaded. Start a new page for this question. For dollar amounts, give your answer to the seatest cent for interest rates, give our answer as a percentage rounded to 2 decimal places. If any parts of the question use values from earlier parts, use the EXACT values from eatie parts QUESTION START a) letween government bonds and corporate bonds, which are riscer? Why? [1 martie Duncan recently completed ACST1001 and is hoping to apply what he has learned to start mesting The first investment he is considering is cporate bonds. Specifically, Duncan is eteressed in a 51.000 20-year semi-annual coupon bond with a coupon rate of 7%. The annual yield to maturity for such bonds is 5.5% b} Calculate the fair price Duncan should pay for one such bond given market condition 2 marke cl Suppose that 6 months after he initially purchases this bond, immediately after receiving the coupon cn that date. Duncan decides to sell his bond to his friend lan, lan pays a price that yields 6 pa, effective. Calculate the price tan paid, ignoring any other costs (such as brokerage) 2 maris) di Calculate the return on Duncan's 6 month investment, expressed as a percentage. (1 mark Duncan is also considering investing in states in a new company, Greene Doeye Ltd. Duncan can buy cither ordinary shares or preference shares e) Explain one difference between an ordinary share and a preference share. (1 mark Duncan has decided to purchase an ordinary share. He has predicted that the first dividend will be paid will be exactly two years from today, and amount to 55. From there, Duncan believes the dividend will grow at 20% p.a. for 3 years. After that the share will grow at 2.9% pa. indefinitely Based on the riskiness of this share, Duncan requires a return of 134 on his investment Calculate the maximum price he is willing to pay for this share. (3 marks) QUESTION END You will need to scan this question and upload it toitean in the Final Exam submission link Please disregard the box below for enter anything you want into it), it doesn't have any effect on your grade