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5. 20 points. New Century Computer issued $450 million of AA-rated 30-year $1,000 par bonds on this date in 2012 at a 2.5% premium, which

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5. 20 points. New Century Computer issued $450 million of AA-rated 30-year $1,000 par bonds on this date in 2012 at a 2.5% premium, which have a coupon interest rate of 8 percent and pay interest annually. A decrease in the inflation rate by 3 percent and a decrease in corporate risk, (beta), have caused the required return on these bonds to be only 5 percent. Find the price today of a bond

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