QUESTION 1 Louis Winthorpe III was evaluating investment opportunities to determine what he should do with his money. One of the investments that he was evaluating was investing $10,000,000 in US corporate securities. Oracle just priced a $7bn in US investment grade securities with differing maturities. They priced the following: Louis likes the company and wants to invest his money in one of these securities (all have face value of $1,000 per bond). 1. If he wants to invest his money in the bond that offers the greatest yield to maturity, which bond should he invest in? 2. If the yield to maturity on the ORCL 5.8% ' 25 was 5.43%, what would the price of the security be? 3. If Louis purchases the bond so it settles on 12/15/22 and the first coupon payment is made on 5/10/2023, how much accrued interest is he paying for each bond as part of his purchase price (recall that US corporates use the 30/360 methodology for calculating accrued interest)? 4. If while determining what he wants to invest in, Louis concludes that US treasury rates will be higher next year, what would that do to the price of the bonds a year from now? a. Please include in your answer the impact that rates have on principal and reinvestment opportunities 5. Louis calculates the below spot and forward rates. If he is correct, what would he estimate the value of the ORCL 5.825 bond will be in two years (assume that there is no credit deterioration, and the market assumption is the face value will be received at maturity)