1) You buy a 5 -year bond that pays a $5 coupon each year for five years. At the end of 5 years, you receive back your principle of $100 (in addition to the final coupon payment of $5 ). Immediately after you purchase the bond, interest rates move to 7%. What is the present value of the cash flows you will receive? Now say rates moved to 3%, what is the present value of the cash flows you receive? Use Excel for the following two questions. Turn in printout. 2) The next ten year of earning for Johnson and Johnson (in billions) are: Use a discount rate of 10%. What is the present value of this stream of earnings (today is year 0 )? (You will need to discount each cash flow back separately, then sum them.) 3) Assume a 3% interest rate. What is the total present value of five $120 cash flows paid in each of the five years? Use the Excel PV function. (Report your answer as a positive number.)