Question 1 and 2 solution on paper

1. TESLA is planning to issue bonds with the following characteristics: Par: 1000 Time to maturity 20 years Coupon rate 7% Annual payments The expected YTM is 6%, what is the price of the bond? If instead of 7% coupon rate with annual payments, the decision is to make 7% semiannual payments, what would the price of the bond be? (15 points) 2.- After 5 years, what would be the price for the TESLA bonds (annual and semiannual coupons) if the interest rate increases to 7%