The Rowan Corp has two bond issues outstanding. Both bonds pay $90 annual interest plus $1,000 at maturity. Bond 1 has a maturity of 30 years, and Bond 2 has a maturity of 5 year.

1. What will be the value of each of these bonds when the going rate of interest is
   1. 5%
   2. 10%
   3. 15%
   4. 20%
2. Using Microsoft Excels relevant functions, calculate the bond prices.
3. Create a table to summarize your results.
4. Prepare a graph displaying your results. Make sure both bonds are displayed on one graph. Make the x-axis interest rate and y-axis bond prices.
5. Prepare a graph displaying the value of the bonds over time. Make sure both bonds are displayed on one graph. Make the x-axis years and y-axis bond prices.
   1. Assuming that the interest rate in the market stays at 5%.
   2. Assuming that the interest rate in the market stays at 15%.