Jazz Jazz ON 13% 11:48 Tap to return to meeting 10:14 f FIN3003 Business Fin... HAND IN LATE Attempt both the questions. Q. # 1- Suppose Ford Motor Company sold an issue of bonds with a 15-year maturity, a $1,000 par value, a 12 percent coupon rate, and semiannual interest payments. a. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6 percent which serves the purpose of required return. At what price would the bonds sell? b. Suppose that, 2 years after the initial offering the going interest rate had risen to 14 percent. At what price would the bonds sell? Q. # 2-To complete your last year in business school and then go through law school, you will need $10,000 per year for 5 years, starting next year (that is, you will need to withdraw the first $10,000 one year from today). Your rich uncle offers to put you through school, and he will deposit in a bank paying 8 percent interest, compounded annually, a sum of money that is sufficient to provide the 5 payments of $10,000 each. His deposit will be made today. a. How large must the deposit be? b. How much will be in the account immediately after you make the first withdrawal? After the last withdrawal