VI. (15 points) Bond Valuation General Motors (GM) has just issued a new bond with a 20-year maturit rate, and $1,000 face value. The GM bond carries a credit rating of Aby the Poor's. Please answer the following questions: 1. Suppose bond investors' required rate of retum is 10%. Please calculate the the bond, assuming annual coupon payments. issued a new bond with a 20-year maturity, 8% coupon Mbond carries a credit rating of A by the Standard & o. Please calculate the price of 2. Suppose bond investors' required rate of return is 10%. Please calculate the price of the bond, assuming semi-annual coupon payments. 3. Suppose Standard and Poor's downgrades GM's credit rating from A to BBB, how will this change affect the price of the bond? Please explain. 4. Suppose the Federal Reserve suddenly cut interest rates. What is the immediate impact on the price of the bond? Please explain. 5. Suppose the market price of the bond is $900. If you buy the bond at this price and hold it to maturity, how much is implied rate of return (i.e., the yield to maturity), assuming annual coupon payments