This question has four small sections: Suppose that in order to finance $80,000,000 toward construction of their new e-sport arena in South Philadelphia Comcast Inc, issues bonds with a 20-year maturity, $1,000 face value, and semi-annual coupon payments. Investment bankers have set the annual coupon rate at 5% (0.05) and the new issue bonds sell at face value.

(1)How many ($1,000) bonds must Comcast issue to finance the portion of the arena? A: 8,000 bonds, B:80,000 bonds, C: 10,000 bonds, D:100,000 bonds.

(2)Based on the coupon rate and face value, what is the coupon payment per bond, which is made twice per year? A: $25, B: $250, C: $50, D: $500.

(3)Four years after issue the annual market interest rate for bonds of comparable risk falls to 4% (0.04) per year, what is the market price or value of the Comcast bonds at that time? A: $1,117.34, B: $2,990.22, C: $530.63, D: $825.22.

(4)Which of the following statements describes the seasoned Comcast bonds in this example? A: Premium bonds because P > FV. B: Premium bonds because P < FV. C: Discount bonds because P > FV. D: Discount bonds because P < FV.