****Please show all the steps clearly,thanks!

Q1)

Lend Lease Ltd is planning to issue 7-year bonds with semi-annual coupon payments. The market interest rate for such bonds is 8%. Coupon payments will be made at the 9.17% rate. The management of Lend Lease Ltd has determined that the company needs to raise $875,000 to fund the purchase of a new office and wants to use the proceeds of the bond issue for that purpose.

i) Calculate the price of the bonds.

ii) State and explain whether these bonds are premium or discount bonds.

iii) Determine how many of these 9.17% coupon bonds the company would need to issue in order to raise the needed capital

iv) Calculate the price of these bonds, if they paid no coupons to investors. Assume semi-annual compounding for these zero-coupon bonds.

v) Determine how many of these zero-coupon bonds the company would need to issue.

Q2)

You have won a lottery worth $1,000,000. The amount will be paid to you in equal installments over 20 years. If the interest rate is 10% compounded annually, how much will you be paid at the end of every year?