1. Using the spread above Treasury rates required by investors for the risk of your company defaulting on its senior unsecured obligations, show at what coupon rate Nike could today issue a 10-year senior unsecured straight bond that makes semi-annual payments and sells for its par value/principal amount of $1000 per bond?

10-year yield = 1.67% at price of 101.86

Basis points for Nike = 28.175

2. Show what the value of the bond in question 1 would be if the yield to maturity fell by 1% (due to a decline in yields on 10-year T-bonds and/or a reduction in the companys default risk).

3. Show what the value of the bond in question 1 would be if the yield to maturity rose by 3% (due to a rise in a large rise in 10-year T-bond yields and/or an increase in the companys default risk).

PLEASE SHOW WORK