I) (Bond valuation) Bellingham bonds have an annual coupon rate of 12% and a par value of $ 1000 and will mature in 5 years. If you require a return of 16%, i) what price would you be willing to pay for thebond? ii) What happens if you pay more for thebond? iii) What happens if you pay less for thebond?

II) (Bond valuation) FloraCo.'s bonds, maturing in 11 years, pay 6% interest on a $1,000 face value.However, interest is paid semiannually. If your required rate of return is 8

8 percent, what is the value of thebond? How would your answer change if the interest were paidannually?

Can you also show how to put these questions in Ti-83 calculator?