c) Imagine today is January 1st 2021, you are thinking of purchasing a Wedderburn LTD 6% Jan 1st 2024 bond, which is a typical UK corporate bond (i.e. it has the typical par value and pays its coupon semi-annually).

i) Write down all the cash flows you will receive AND when you will receive each one. (Assume that it pays its coupons on January 1st and July 1st, and the January 1st 2021 coupon has already been paid.)

ii) If market interest rates are at 2% and are expected to remain the same for the foreseeable future, estimate the value of this bond.

iii) If market interest rates rise, what would happen to the value of the bond?