QUESTION 4: Compute the value of the following bonds assuming a 3% discount rate (required rate of return) NOTE: BOND PRICE CAN BE FOUND BY USING THE PRESENT VALUE FORMULA. YOU CAN EITHER USE THE EXCEL FORMULA FOR PRESENT VALUE OR CALCULATE BY HAND USING THE PRES Workbook last saved: Just now FOR EACH CASH FLOW. IF USING THE EXCEL FORMULA: RATE = DISCOUNT RATE NPER = NUMBER OF TIMES PERIODS UNTIL THE BOND MATURES PMT = COUPON PAYMENT FV = FACE VALUE a. A zero-coupon bond that pays $1,000 in five years (Hint: PMT = 0) BOND PRICE (PRESENT VALUE) = b. A bond that pays $1,000 in five years, with five annual coupon payments of $20 each BOND PRICE (PRESENT VALUE) = c. What is the coupon rate if coupon payments are $20 per year? At what discount rate would the value of the bond be "at par" (e.g., be worth $1,000?). Explain your reasoning. COUPON RATE = DISCOUNT RATE IF VALUE AT PAR = EXPLAIN ANSWER FOR DISCOUNT RATE ABOVE