These questions are based on BONDS: Please provide a detail explanation and show your work and the formulas used to get the answers as well as computations.

1) Consider a 14-year bond with a face value of $1000 that has a coupon rate of 5.5%, with quarterly payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline.

2) Your company wants to raise $15 million by issuing 10-year zero-coupon bonds. If the yield to maturity on the bonds will be 8% (APR), what total principal amount of bonds must you issue?

3) For each of the following pairs of Treasury securities (each with $1000 par value), identify which will have the higher price:

a. A four-year zero-coupon bond or a six-year zero coupon bond?

b. A four-year zero-coupon bond or a four-year 5% coupon bond?

c. A two-year 4% coupon bond or a two-year 5% coupon bond?

4) Suppose a 15-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for $1374.74.

a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 4% APR, what will the bond's price be?