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1. Allied Corporation has already issued ten thousand $1,000 bonds, maturing in 2033, to establish a research and development fund for a new product. The
1. Allied Corporation has already issued ten thousand $1,000 bonds, maturing in 2033, to establish a research and development fund for a new product. The goal is to develop and launch this new product early next year. The bonds were issued with an interest rate of 4.00%. Identity the following values for each bond: Face amount Yield Coupon payment Amount paid Periods to maturity Present value of bond Yield to maturity semiannually 2. Using the Allied Corporation bond information from above, calculate the following: a. If the current market interest rate for new investors increases to 6.00%, what will be the present value for this bond? Show your work or your inputs. b. If the current bond market rates drop to 2.00%, what will be the present value for the Allied bond? Show your work or your inputs. c. What conclusion can you draw from this comparison
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