This is for a midterm please it's two parts

Pricing Stocks and Bonds 1 Dewey, Cheatham, and Howe run a multinational cryptocurrency marketplace and are looking to expand their company. They has three options: a one-year coupon bond, a one-year discount bond, and selling shares of the company. The company will make \$700N in profits this year and would sell 90M shares, and thus would pay a dividend of $7.78 per share starting next year (i.e., Dt+1=7.78 ). The face value of both bonds would be $1000. The current economy-wide interest rate is 5% and is controlled directly by the Federal Reserve, and is used by investors as a benchmark for comparing rates of returns and calculating discounted values. a (10 points) Plot the market for money and the market for your corporate bonds. Be sure to label the axes appropriately! b (15 points) Calculate the following: i) what would the market be willing to pay for the discount bond? ii) if they would like to sell their coupon bonds for $975, what coupon rate (or coupon payment) must they offer? iii) if they project the growth rate of the company to be 1% and the required rate of return is equal to the economy-wide interest rate, what price will their stock sell for? c (5 points) Suppose that the Federal Reserve is considering an increase in the money supply. Plot the impact on the market for money and the corresponding impact on the market for corporate bonds. Short Answer (2 of 2): Bond Markets and Balance Sheets 2 Consider an economy with one bank. The bank holds $100M in reserves, $400M in loans, $200M in investments in zero coupon bonds. They have taken in $600M in deposits. All of their investments are in two-year zero coupon bonds. a (15 points) Show the T-Account for this bank. Be sure to calculate bank capital! b (5 points) If the reserve ratio is 10%, how many (dollar value) of their reserves are excess reserves? c (15 points) Suppose that the face value of every bond is $1000. The market interest rate is 5%. What is the price of each zero coupon bond? How many bonds does the bank own if all of their investments are in these bonds. Don't forget that they are two year bonds! d (5 points) If the market interest rate increases to 10%, what is the new price of these bonds? e (10 points) What happens to the bank's T-Account after this change in the interest rate? Show this in a new T-Account. if the bank still solvent? (10 points) The government discovers that Dewey, Cheatham, and Howe have been fraudulently cooking the books and are fired by shareholders. The new CEO indicates that it will be two years before the company is profitable and paying dividends again, meaning that they will start paying at the end of year 3. How does this affect the company's stock price? Assume that the interest rate is still 5%. f (5 point) Dewey, Cheatham, and Howe would like to start an NFT marketplace. They are willing to borrow money at an 8% interest rate, while the interest rate in the economy is still 5%. For a bank to make this loan, how certain must they be (in percent terms) that Dewey, Cheatham, and Howe will repay the loan