** THESE 3 ARE PART OF ONE SINGLE QUESTION. **

Question Nos. 3 to 5 relate to the following information regarding a bond. Par Value $1,000; Coupon Rate: 12%; Semi-annual interest payment; and times to maturity: 20 years. 3. If the required rate of return of the bond is 11%, find out what should be its value today. If the market price of the bond is equal to its intrinsic value you found out, what types of bond it is now? 4. If the required rate of return increases to 12% all on a sudden, how would the value of the bond change as a result? 5. If the current market price of the bond is $ 1060, by using Excel Program find out the yield to maturity of the bond