Although it is uncommon, every year companies go bankrupt. What happens to a companys stocks and bonds when it goes bankrupt? [Always remember: in writing your argument, start with introduction, explanation, and followed by concluding remark]

b. How could bonds be used to provide regular income? What if they dont pay coupons? [Always remember: in writing your argument, start with introduction, explanation, and followed by concluding remark]

Calculate the dollar amount of interest and approximate the market value for the following $1,000 bonds.

Interest Rate When Issued	Dollar Amount of Interest for the Existing Bond	Interest Rate for Comparable Bonds Issued Today	Approximate Market Value
6%		5%
6.1%		7.2%
7.5%		6.6%

[Always remember: show ALL the calculation steps/processes. Less mark will be given if

you failed to show the calculation]