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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

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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. 0 1 2 3 5 5 6 6 7 8 8 9 9 10 + $80 $80 $80 $80 580 $80 $80 $80 S80 $ 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

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