Question: 1) please show the work 2) 2) In 2015, After paying all registration fees to the exchange, and the costs of the IPO, Spahr cosmetics

1) please show the work  1) please show the work 2) 2) In 2015, After paying
2)
all registration fees to the exchange, and the costs of the IPO,

2) In 2015, After paying all registration fees to the exchange, and the costs of the IPO, Spahr cosmetics management thought that additional funding is needed. Spahr suggested issuing corporate bonds to mature in 15 years. The company issued the bonds at a par value of a $1000, the total size of the bond issue was $10 million. If Spahr cosmetics bond pays coupon semiannually, and the YTM at issuance is 5%. What is the amount of each coupon payment? a) $25 b) $ 50 c) $ 75 d) $ 12.5 5) in 2018, Mr. David "an investor and one of Spahr cosmetics bondholders" wanted to sell his bonds that he acquired back in 2015. What would be the current market price for the bond assuming the following term structure of similar risk bonds? Bonds maturing in YTM 2020 6% a) $ 778.42 b) $ 326.14 2025 8% c) $ 1000.00 2030 10% d) $ 655.03

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