Please answer the following questions: 1. Based on the following cash flows of a bond, what is the price of this bond if interest rate is 7 percent per year compounded annually? Use two methods to answer this question. 10 + ++ + $80 $80 $80 $80 SBO $80 $80 $80 $80 $ 80 1.000 (20 points) Show your calculation to get full points. Check your answer: The bond price is $1,070.24 Answer: Method 1: Method 2: 2. Calculate the coupon payments for the following bonds: 1) $1,000 face value, 8% coupon rate, 2% per year compounded quarterly 2) $1,000 face value, 4% coupon rate, 3% per year compounded annually 3) $1,000 face value, 6% coupon rate, 12% per year compounded monthly 4) $1,000 face value, 8% coupon rate, 8% per year compounded semi- annually (12 points) Show your calculation to get full points. Answer: 1) 2) 3) I 4)