Help! I need shown how to do #3 please!

ldmore later on, but at the moment the stock on SeaCraft's balance sheet. Storming into your office, he declared, "Leasing the molding machine is going to solve my debt problemst You're supposed to be the financial expert, why didn' you think of it? Why do I have to think of everything low rice istcapital strategy that addresses both the Sugse long run, explaining why it is likely to work. st joined SeaCraft Inc, a manufacturer ts, as its CFO. When you took the desk by the end of the week." Before you could answer, he rushed out for a meeting with the marketing boa fiberglas u knew that the company was not in the best is carrying substantial debt. To make matters hine is almost completely worn out and needs rating profit, and the owner, Sam Alston, condition. Profits are adequate, but the epartment. Prepare a tactful memo to Sam explaining a little se, the company's largest fiberglass molding about leasing and why it may not be as wonderful for SeaCraft as he thinks. Write the memo for a reader who is not a financial person (ie., avoid using technical jargon like FASB, capitalize, equity, annuity, and present value). Talking about financing, balance sheets, assets, and debt is OK. ed. SeaCraft cant pay for a new machine 't want to sell any new stock which terest. PROBLEMS The first two problems involve annual compounding. In the remaining problems, assume all bonds pay interest semiannually unless otherwise indicated. Finding the Price of a Bond: Concept Connection Example 7-1 (page 293) 1. A bond that pays l 0% interest compounded annually on a $1,000 face value will mature in 20 years. The interest rate is now 12%, what should the bond's market price be? A $1,000 par value, 30-year bond is five years old. It pays interest once a year at an annually compounded coupon rate of 12%. The market is returning 8% on comparable bonds. What is the bond's market price? The Altoona Company issued a 25-year bond five years ago with a face value of $1,000.The bond pays interest semiannually at a 10% annual rate. a. what is the bond's price today if the interest rate on comparable new issues is 12%? b, what is the price today if the interest rate is 8%? c. Explain the results of parts (a) and (b) in terms of opportunities available to investors. 2. 3