Question: Please show work and formulas used 1. The table below shows basic information about five corporate bonds (A - E). Using the information given, calculate

Please show work and formulas used

Please show work and formulas used 1. The table below shows basic

1. The table below shows basic information about five corporate bonds (A - E). Using the information given, calculate each bond's value based on the Investor's Rate of Return. NOTE: Assume that all bonds make coupon payments semiannually. Coupon Years to Investor's Bond Par Value Interest Rate Maturity Rate of Return A $1000 14% per year 20 12% per year B $1000 8% per year 16 8% per year C $ 100 10% per year 8 13% per year D $ 500 16% per year 13 18% per year E $1000 12% per year 10 10% per year 2. The table below shows basic information about five corporate bonds (F -J). Using the information given, calculate the bond's yield-to-maturity based on the Current Market Price. NOTE: Assume that all bonds make coupon payments semiannually. Coupon Years to Current Bond Par Value Interest Rate Maturity Market Price F $1000 9% per year 8 $ 820 G $1000 12% per year 16 $1000 H $ 500 12% per year 12 $ 560 I $1000 15% per year 10 $1120 J $1000 5% per year 3 $ 900 3. Refer to your bonds handout from class on Monday 9/28 and locate the following bond: Target Corp TGT3869508 For this bond, assume a par value of $1000 and a required rate of return equal to 3.5% per year. A. draw a timeline showing the cash flows for this bond; and B. calculate the bond value based on required rate of return; and C. calculate the yield-to-maturity based on current market price. 4. Now, answer each of the following questions concerning the bond from question #3. A. Is the bond selling at a premium or a discount? How do you know? B. Is the bond value greater than par, equal to par, or less than par? Why is that the case? C. Is the bond yield-to-maturity greater than coupon, equal to coupon, or less than coupon? Why is that the case? D. Given a required rate of return equal to 3.5% per year, would you invest in this bond? Why or why not

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