Can you show the work/formulas

7 Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four 8 years remaining until maturity. The par value of the bond is $1,000, and the bond pays interest 9 annually. 10 a. Determine the current value of the bond if present market conditions justify a 12 percent 11 required rate of return. 12 b. Now, suppose Twin Oaks' four-year bond had semiannual coupon payments. What would be its 13 current value? (Assume a 6 percent semiannual required rate of return. However, the actual 14 rate would be slightly less than 6 percent because a semiannual bond is slightly less risky than 15 an annual coupon bond.) 16 c. Assume that Twin Oaks' bond had a semiannual coupon but 20 years remaining to maturity. 17 What is the current value under these conditions? (Again, assume a 6 percent semiannual 18 required rate of return, although the actual rate would probably be greater than 6 percent 19 because of increased price risk.) 20 21 ANSWER 22 a. rate 23 Interest rate 24 Coupon rate 25 Years to maturity 26 Par value 27 Annual coupon payment 28 Bond value 29 30 nper FV pmt PV 32 b. 33 Interest rate rate 34 Coupon rate 35 Semiannual periods to maturity nper 36 Par value FV 37 Semiannual coupon payment pmt 38 Bond value PV 39 40 41 42 43 44 c. 45 Interest rate rate 46 Coupon rate 47 Semiannual periods to maturity nper 48 Par value FV 49 Semiannual coupon payment pmt 50 Bond value PV 51 52 53