• A company called Lend Lease Corporation is planning to issue 14-year bonds with the semi-annual coupon payments.
• The market interest rate for such bonds is 9%, and the bond coupon payments will be at 7%.
• The management of Lend Lease Corporation has confirmed the company needs to raise $2,500,000 to fund the purchase of land for a new office in the UAE city of Khor Fakkan, Fujairah.
  1. Calculate the priceof these coupon-paying bonds. (2 points)

2. Determine whether these bonds are premium or discount bonds. Explain. (1 point)

3. Estimate the number of these coupon-paying bondsthat the company would need to issue. (1 point)

4. Compute the current yieldon these coupon-paying bondsAND interpret its meaning to the potential bondholder interested in buying the companys bonds. (1 point)