(1) A Review of Bonds and Stocks Valuation The Anderson Company is planning to finance a new project by selling bonds. The face value of each bond will be $1,000 and interest payments will be paid annually. The firm's financial manager estimates that they can issue 15- year bonds, 8% coupon rate and $850 selling price. The financial manager is expecting you to answer the following questions: . What coupon rate must be offered so that the bonds' selling price will be $1,000 rather than $850? b. C. The manager estimates that the firm will not be able to pay a coupon rate higher than 9% due to expected cash flow problems in the future and he is interesting in selling the issue for $786 per bond. What adjustment in the issue description is needed in this case if you estimate that the required rate of return will be 12% ? (Show calculations support your answer)... Suppose that the firm decides to sell the issue today for $850 a bond carrying 8% coupon rate and 15 years to maturity. If the market value of the bond 10 years before maturity is expected to be exactly equal to its value today, i.e., $850, what does this imply about the change in the required rate of return? Explain your answer.