Question: Please type the answer in MS word/ Write the answer in handwritten. Please do use excel format. Gonzalez Electric Company has an outstanding 10 percent

Please type the answer in MS word/ Write the answer in handwritten. Please do use excel format.

  1. Gonzalez Electric Company has an outstanding 10 percent coupon rate bond issue with a face value of $1,000 per bond and three years to maturity. Interest is payable annually. The bonds are privately held by Suresafe Fire Insurance Company. Sure safe wishes to sell the bonds and is negotiating with another party. It estimates that, in current market conditions, the bonds should provide a (nominal annual) return of 14 percent. What price per bond should Sure safe be able to realize on the sale?
  2. What would be the price per bond in Problem 1 if interest payments were made semiannually?

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