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Please show detailed processes. Thank you! 1. Two years ago, St. Laurent Shippers Co. issued 7-year semi-annual bonds offering a coupon of 6.00%. At issue,

Please show detailed processes. Thank you!

1. Two years ago, St. Laurent Shippers Co. issued 7-year semi-annual bonds offering a coupon of 6.00%. At issue, the markets required rate of return was 7.50%. Today the required rate of return has increased to 10.50%. The face value of the bonds are $1000. If you wished to purchase this bond today, what price would you be willing to pay?

2. Firm A has $700,000 of debt paying interest at a rate of 10% per year, payable annually. The company has earnings before interest and taxes of $2,000,000. The corporate tax rate is 35%. By how much in dollars does this debt reduce the firms corporate tax bill in a given year?

3, A UK bond has a 6-year bond with a face value of GBP 1,000 and pays an annual coupon of 6.00%. The markets required rate of return is 7%. What would be the quoted price of the bond (per GBP 100 of face value)? Provide your answer as a number with 2 decimals. Do not enter the currency or a percent (%) sign. The quoted price is the price as a % of par (or per $100 of face value).

4. European Skate Manufacturer has issued an 6-year bond with a face value of EUR 1,000 and a 4.75% coupon, payable annually. If the markets required rate of return is 5.5%, what is the current bond price? Provide your answer to 2 decimals.

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