Question:

A $1,000 face value bond issued by the Blue Company currently pays total annual interest of $80 per year and has a 15-year life.

a). What is the present value, or worth, of this bond if investors are willing to accept a 10 percent annual rate of return on bonds of similar quality bond?

b). How would your answer change is the bond makes semi-annual payments?

c). How would your answer in (a) change if, one year from now, investors only required a 6 percent annual rate of return on bond investments similar in quality to the blue bond?

d). Suppose the original bond can be purchased for $925. What is the bonds yield to maturity?

Explain in excel no calculator please. Kindly show detailed calculation steps by step and do not copy from Chegg. Otherwise, I have to report the answer.