Please show work and formulas used
1. The table below shows basic information about five corporate bonds (A - E). Using the information given, calculate each bond's value based on the Investor's Rate of Return. NOTE: Assume that all bonds make coupon payments semiannually. Coupon Years to Investor's Bond Par Value Interest Rate Maturity Rate of Return A $1000 14% per year 20 12% per year B $1000 8% per year 16 8% per year C $ 100 10% per year 8 13% per year D $ 500 16% per year 13 18% per year E $1000 12% per year 10 10% per year 2. The table below shows basic information about five corporate bonds (F -J). Using the information given, calculate the bond's yield-to-maturity based on the Current Market Price. NOTE: Assume that all bonds make coupon payments semiannually. Coupon Years to Current Bond Par Value Interest Rate Maturity Market Price F $1000 9% per year 8 $ 820 G $1000 12% per year 16 $1000 H $ 500 12% per year 12 $ 560 I $1000 15% per year 10 $1120 J $1000 5% per year 3 $ 900 3. Refer to your bonds handout from class on Monday 9/28 and locate the following bond: Target Corp TGT3869508 For this bond, assume a par value of $1000 and a required rate of return equal to 3.5% per year. A. draw a timeline showing the cash flows for this bond; and B. calculate the bond value based on required rate of return; and C. calculate the yield-to-maturity based on current market price. 4. Now, answer each of the following questions concerning the bond from question #3. A. Is the bond selling at a premium or a discount? How do you know? B. Is the bond value greater than par, equal to par, or less than par? Why is that the case? C. Is the bond yield-to-maturity greater than coupon, equal to coupon, or less than coupon? Why is that the case? D. Given a required rate of return equal to 3.5% per year, would you invest in this bond? Why or why not