You are required to show your work. Providing answers alone will not get you full credit. 1. You are considering the following corporate bond: a. What is the current bond price if the coupons are paid semi-annually? ( 3 marks) b. Is the bond a discount or premium bond? Explain. (2 marks) c. Calculate its current yield. ( 2 marks) 2. Suppose ZBA Inc., just paid a dividend of $4 per share. It is expected that the dividends will grow at a constant rate of 3 percent per year indefinitely. If investors require a 10 percent return on ZBA stock, a. What is the current price today? ( 3 marks) b. What will the price be in three years? ( 2 marks)