Part Three - Problems. Answer Three out of Five Questions. Each Worth One Two-thirds (1.67) Points Wilson Oil Company issued bonds 5 years ago at $1.000 per bond. These bonds had a 25-year hire when issued and the annual interest payment was then 15 percent. This return was in line with the required returns by bondholders at that point in time as described next: 7% - Real rate of return1.............. --Inflation Premium ............... - Risk Premium Total Rate of Return .... 8% 3% 49 15% Assume that lo years later, due to bad publicity, the risk premium is now 7 percent and is appropriately reflected in the required rate of return (or vield to maturity) of the bonds. The bonds now have 15 years remaining until maturity. How much are you willing to pay for this bond? Show your Calculation