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Firm B has a bond with face value of $100, coupon rate of 7%, and a 15-years maturity. Firm B makes semi-annual coupon payments. Investors

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Firm B has a bond with face value of $100, coupon rate of 7%, and a 15-years maturity. Firm B makes semi-annual coupon payments. Investors require a return of 6%. You must show your work In answering the questions below. (1) What is the amount of each coupon payment? (2) What is the present value of all coupon payments? (3) What is the present value of face value? (4) What is the value of the bond? (5) If the price of the bond is $104, will you invest in such a bond? Explain. (6) if interest rate goes up by 2%, what will be the value of the bond? What will be the rate of change in the value of the bond compared to (4) above? Show work, (7) Discuss the relationship between bond prices and interest rates. (8) Do long-term bonds have more interest rate risk than short-term bonds? Explain. Edit View Insert Format Tools Table 120 Paragraph TE

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