How would you calculate questions 3, 4, and 5, and are questions 1 and 2 correct?

- o x Sam Youngblood 8 Case%20Studies%20(2) - Saved File Home Insert Draw Formulas Data Review View B I U CA A A E E gle 23 En E 21 Ad 47 0 B Sensitivit A D E F G G H H I J K M N O P Q Years to maturity Required return Amount needed Face value 20 7.50% 50,000,000 1,000 Payments until maturity: $ 75.00 Present Value: ($764.59) Present Value of maturity amount: $ (235.41) Coupon rate Tax rate 7.50% 35% Year bond is called Spread above Treasury Treasury rate at call Treasury rate at call 0.40% 4.80% 8.20% Output area: 2) Price of coupon bond # of coupon bonds needed (235) 50,000 Price of zero coupon bond # of zeroes needed $478.89 104,408 Case Studies Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 13 9 M 8:02 - o x Sam Youngblood 8 Case%20Studies%20(2) - Saved File Home Insert Draw Formulas Data Review View B I U D A A 3 be sq 23 E 21 AL 49 0 B Sensitivit A B D E F G H I J K M N O P Q 3) Repayment of coupon bonds Repayment of zeroes 4) Year 1 interest payments: Pretax coupon payment Aftertax coupon payment Cash in or outflow Value of zero in one year Zero coupon growth Zero coupon bond Cash in or outflow During the life of a bond, the zero generates cash inflows to the firm in the form of the interest tax shield of debt. 5) Make whole price Make whole price Case Studies Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 13 0 8 :03