A company called Lend Lease Corporation is planning to issue 12-year bonds with the semi-annual coupon payments. The market interest rate for such bonds is 7%, and the bond coupon payments will be at 5%. The management of Lend Lease Corporation has confirmed the company needs to raise $4,500,000 to fund the purchase of land for a new office in the UAE city of Khor Fakkan, Fujairah. a. Calculate the price of these coupon-paying bonds. (2 points)

b. Determine whether these bonds are premium or discount bonds. Explain. (1 point) c. Estimate the number of these coupon-paying bonds that the company would need to issue. (1 point)

d. Compute the current yield on these coupon-paying bonds AND interpret its meaning to the potential bondholder interested in buying the companys bonds. (1 point)

e. Calculate the price of these bonds, if they paid no coupons to investors. (1 point)

f. Estimate the number of these zero coupon bonds that the company would need to issue. (1 point)

g. The management of Lend Lease Corporation is undecided on whether they should issue the coupon-paying bonds or the zero-coupon bonds in order to raise the needed capital. Write a memorandum to the companys CFO where you explain and provide reasoning for your answer.