Complete Parts 1, 2, and 3

1A) One of General Electric's bond issues has an annual coupon rate of 3.6%, a face value of $1,000 and a required return of 5%. What is the value of the bond if the bond matures in 30 years?

1B) What is the value of the same bond 20 years later, when it has 10 years to maturity left, if interest rates haven't changed?

2) A corporate bond has 23 years to maturity, a face value of $1,000, a coupon rate of 5.5% and pays interest twice a year. The annual market interest rate for similar bonds is 3.1%. What is the value of the bond (in $)?

3) The expected inflation rate is 1.7%. What nominal interest rate is necessary to earn a real return of 2.9% on an investment?