Please solve all questions. You are required to show the following 3 steps for each problem (sample questions and solutions are provided for guidance):

(i) Describe and interpret the assumptions related to the problem.

(ii) Apply the appropriate mathematical model to solve the problem.

(iii) Calculate the correct solution to the problem.

issues a bond which has a a face value of $1,000, and a market price of $990. What is the semiannual interest payment? Round to two decimal places. 2. A shipping company sold an issue of 14-year $1,000 par bonds to build new ships. The bonds pay 10% interest, compounded semiannually. Today's required rate of return is 8.50%. How much should these bonds sell for today? Round to two decimal places. 3. Assume a company has an issue of 30-year $1,000 par value bonds that pay 4.75% interest, compounded annually. Further assume that today's required rate of return on these bonds is 3.25%. How much would these bonds sell for today? Round to two decimal places