Please solve the problems

be affected. 00). The compa er 31, 2005, when P10-5 South Company purchased a held-to-maturity security on January 1, 2003 was expecting a 7% rate of return. The security matures on December Ayys the holder $10,000. It pays the holder nothing prior to that date. for the security of the security at the interest ratele Required: a. Determine the amount that South would have been willing to pay for the January 1, 2003. b. Assume that interest rates remain at 7%. What will be the value of December 31, 2003, December 31, 2004, and December 31, 2005? c. Prepare the entries necessary on the following dates. Assume that the int mains at 7%. January 1, 2003, for the purchase of the security December 31, 2003, adjusting entry December 31, 2004, adjusting entry December 31, 2005, adjusting entry December 31, 2005, for the maturity of the security d. Assume that, instead of remaining stable at 7%, interest rates rise to 90% life of the security. What would you expect to happen to the value of the over its life? Explain your answer. Would it change any of the accounting ments? Explain your answer. se to 9% over the alue of the securit