XYZ Group decides to go the public market to raise the needed capital for its business expansion. In the stock market, the Company will issue 10 million stocks at par value of 20,000 VND. XYZ has paid a 10% dividend this year (percentage of par value). The Companys expected long-term growth rate is 6%. Companies with similar risks have a required return on equity of 18%. In the bond market, XYZ will issue multiple maturities bonds, all selling at par as follow: 1 year bond 7% coupon 2 year bond 8% coupon 3 year bond 8.5% coupon 5 year bond 10% coupon a. Calculate the value of XYZ stock. If XYZ is going to IPO the stock at the price of 25,000 VND. Would you invest in the stock? Please explain your answer. b. What is the shape of the yield curve for XYZ bonds. Based on the expectation theory, what will be your forecast about the movement of the expected future short-term rate? c. Calculate the expected 1-year interest rate next year and 2 years from now.