Twin Oaks Health Center has a bond issue outstanding with a coupon rate of $7$ percent and four years remaining until maturity. The par value of the bond is $1,000$ and the bond pays interest annually.

$1.)$ Determine the current value of the bond If present market conditions justify a $12$ percent required rate of return.

Interest rate$=$

Coupon rate$=$

Years to maturity$=$

Par value$=$

Annual coupon payment$=$

Bond value$=$

$2.)$ Now, suppose Twin Oaks' four$-$year bond had semiannual coupon payments. What would be it$$s current value? $($Assume a $6$ percent semiannual required rate of return. However, the actual rate would be slightly less than $6$ percent because a semiannual bond is slightly less risky than an annual coupon bond.$)$

Interest rate$=$

Coupon rate$=$

Semiannual periods to maturity$=$

Par value$=$

Semiannual coupon payment$=$

Bond value$=$

$3.)$ Assume that Twin Oaks' bond had a semiannual coupon but $20$ years remaining to maturity.

What is the current value under these conditions? $($Again$,$ assume a $6$ percent semiannual required rate of return, although the actual rate would probably be greater than $6$ percent because of Increased price risk.$)$

Interest rate$=$

Coupon rate$=$

Semiannual periods to maturity$=$

Par value$=$

Semiannual coupon payment$=$

Bond value$=$