im needing help to do the pmt &pv values. please helpTwin Oaks Health Center has a bond issue outstanding with a coupon rate of $7$ percent and four

years remaining until maturity. The par value of the bond is $$1,000,$ and the bond pays interest

annually.

a$.$ Determine the current value of the bond if present market conditions justify a $12$ percent

required rate of return.

b$.$ Now, suppose Twin Oaks' four$-$year bond had semiannual coupon payments. What would be its

current value? $($Assume a $6$ percent semiannual required rate of return. Howerer, the actual

rate would be slightly less than $6$ percent because a semiannual bond is slightly less risky than

an annual coupon bond.$)$

c$.$ Assume that Twin Oaks' bond had a semiannual coupon but $20$ years remaining to maturity.

What is the current value under these conditions? $($Again$,$ assume a $6$ percent semiannual

required rate of return, although the actual rate would probably be greater than $6$ percent

because of increased price risk.$)$

ANSWER

a$.$ Determine the current value of the bond if present market conditions justify a $12$ percent

required rate of return.

b$.$

Semiannual periods to maturit nper