Question: Please show formulas and the full work without the use of excel. years to 2. (13 Points) Price the following bond: A bond that pays

Please show formulas and the full work without the use of excel.years to 2. (13 Points) Price the following bond: A bond thatPlease show formulas and the full work without the use of excel.

years to 2. (13 Points) Price the following bond: A bond that pays a $80 coupon per year, with 20 maturity, a $1000 face value, and a double-A bond rating. On the market, the yield to maturity on a 10-year A-rated bond is 8%, the yield on a 10-year AA-rated bond is 7%, and the yield on a 10-year AAA-rated bond is 6%, while the yield to maturity on a 20-year A-rated bond is 10%, the yield on a 20-year AA-rated bond is 9%, and the yield on a 20-year AAA-rated bond is 8%. What should the market price of this bond be? 3. (15 points) You are considering adding a stock to your portfolio that has a chance of earning four possible stock returns. The four possible returns are -10% (25% chance), 5% (10% chance), 20% (35% chance), and 35% (30% chance). What is the expected return and standard deviation for this stock

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