1. To finance its budget deficit for the fiscal year 2020 due to expenditure from the Coronavirus pandemic, UGA has decided to issue a total of 200,000 coupon bonds each with a face value of $10,000 with a 10% coupon rate. The Vice President for finance received approval from the board of regents to issue the bond. Bond holders will receive semiannual payments of their bonds which matures in 30 years. Due to market forces, UGA forecast that they will enter the bond market at the time when the interest rate has changed from 10% to 12% per year. Draw the cash flow diagram for the bond showing all the key elements (P, A, i, n, and the maturity). Draw your CFD the box. How much will UGA raise from the bond sale? Show all your work and put your final answer in the box. Amount Raised If UGA decides to buy all the bonds back with a promise of paying an effective annual interest rate of 14.49% after 20 years of the sale, how much will UGA spend to buy all the bonds? Show all your work and put your final answer in the box. UGA will spend = iii. Dr. Maxwell of the college of Engineering has decided to invest in this bond as part of his retirement plan. His plan is to buy 10 o ftese bonds whenthey are issued. He will keep them for 5 years and hope to sell them at 12,000 a piece. a. Draw the CFD for Dr. Maxwell. Draw your CFD the box. b. Calculate the IRR for Dr. Maxwell if all his assumptions hold. Put your final answer in the box. IRR