Sakura$-$san and Kenji$-$san have completed the corporate finance course during their undergraduate study. They are currently attempting to

solve the following problems $(10$ points$)$:

a$)$ A Japanese firm issued $20-$year bonds two years ago at a coupon rate of $7\mathrm{.}50$ percent. The bonds make semiannual payments. These

bonds currently sell for $98$ percent of par value. The par value is JPY $10,000.$ Calculate the yield$-$to$-$maturity $($YTM$)!(3$ points$)$

b$)$ An Italian firm will pay a dividend of EUR $200$ next year. The company has stated that it will maintain a constant growth rate of $3\mathrm{.}50$

percent a year forever. Most analysts agree that this is a reasonable growth rate. They want a range of returns from $12$ to $15$ percent.

Estimate the price range that they are willing to pay for the stock! $(3$ points$)$

c$)$ Please refer to the additional reading from the Japanese Securities Research Institute $(2016).$ Elaborate on the development of the

stock exchange in Tokyo after the financial Big Bang. Elaborate the expected and unexpected events in the Tokyo Stock Exchange!

Evaluate those events related to the chapter$//$topic about "Capital Market History" you learned! $(4$ points$)$