Question 3: Bond Valuation (20 marks) Lend Lease Ltd is planning to issue 7-year bonds with semi-annual coupon payments. The market interest rate for such bonds is 8%. Coupon payments will be made at the 9.17% rate. The management of Lend Lease Ltd has determined that the company needs to raise $875,000 to fund the purchase of a new office and wants to use the proceeds of the bond issue for that purpose i) (10 marks) ii)State and explain whether these bonds are premium or discount bonds. (2 marks) iii) Determine how many of these 9.17% coupon bonds the company would need to issue (2 marks) iv) Calculate the price of these bonds, if they paid no coupons to investors. Assume semi- (4 marks) Calculate the price of the bonds in order to raise the needed capital annual compounding for these zero-coupon bonds v)Determine how many of these zero-coupon bonds the company would need to issue (2 marks) (Total-20 marks)