Dewey, Cheatham, and Howe run a multinational cryptocurrency marketplace and are looking to expand their company. They has three options: a one-year coupon bond, a one-year discount bond, and selling shares of the company. The company will make $700M in profits this year and would sell 90M shares, and thus would pay a dividend of $7.78 per share starting next year (i.e., Dt+1=7.78 ). The face value of both bonds would be $1000. The current economy-wide interest rate is 5% and is controlled directly by the Federal Reserve, and is used by investors as a benchmark for comparing rates of returns and calculating discounted values. a (10 points) Plot the market for money and the market for your corporate bonds. Be sure to label the axes appropriately! b (15 points) Calculate the following: i) what would the market be willing to pay for the discount bond? ii) if they would like to sell their coupon bonds for $975, what coupon rate (or coupon payment) must they offer? iii) if they project the growth rate of the company to be 1% and the required rate of return is equal to the economy-wide interest rate, what price will their stock sell for? c (5 points) Suppose that the Federal Reserve is considering an increase in the money supply. Plot the impact on the market for money and the corresponding impact on the market for corporate bonds. d (5 points) If the interest rate falls from 5% to 2%, what would happen to the price of the discount bond? e (10 points) The government discovers that Dewey, Cheatham, and Howe have been fraudulently cooking the books and are fired by shareholders. The new CEO indicates that it will be two years before the company is profitable and paying dividends again, meaning that they will start paying at the end of year 3. How does this affect the company's stock price? Assume that the interest rate is still 5%. f (5 point) Dewey, Cheatham, and Howe would like to start an NFT marketplace. They are willing to borrow money at an 8% interest rate, while the interest rate in the economy is still 5%. For a bank to make this loan, how certain must they be (in percent terms) that Dewey, Cheatham, and Howe will repay the loan