1. Daubert, Inc., planned to issue and sell at par 10-year, $1000 face value bonds totaling $400 million next month. The bonds have been printed with a 6% coupon rate. Since that printing, however, Moody's downgraded Daubert's bond rating from Aaa to Aa. This means the bonds will have to be offered to yield buyers 7.4%. How much less than it expected will Daubert collect when the bonds are issued? Ignore administrative costs and commissions. Assume bond coupons are paid semiannually. Round the answer to the nearest dollar.

2. .Longly Trucking is issuing a 20-year bond with a $2000 face value tomorrow. The issue is to pay an 8% coupon rate, because that was the interest rate while it was being planned. However, rates have increased suddenly and are expected to be 9.4% when the bond is marketed. What will Longly receive for each bond tomorrow? Assume bond coupons are paid semiannually. Round the answer to the nearest cent

3. The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate of 9%. The other was issued 5 years ago at a coupon rate of 9%. Both bonds were originally issued with terms of 30 years and face values of $1000. The going interest rate is 14.5% today.

What are the prices of the two bonds at this time? Assume bond coupons are paid semiannually. Round the answers to the nearest cent. Old: $ New: $