XYZ Co has $6000$ units of bonds outstanding. Each unit has $$100$ face value, $7\%$ coupon rate with semi$-$annual payments, and $20$ years to maturity. The risk$-$free rate is $3\%,$ default risk premium for its bond is $2\mathrm{.}5\%,$ maturity risk premium is $2\%.$ XYZ has a tax rate of $20\%.2$XYZ Co has $15,000$ shares of common stocks. The stock has a standard deviation of return of $32\%.$ A stock market index has a standard deviation of return of $25\%.$ The correlation coefficient between stock return and stock stock index return is $0\mathrm{.}86.$ The stock is expected to pay dividend of $$4$ in one year and its expected price in one year is $$58.$ The risk$-$free rate is $3\%.$ The stock market index has an expected return of $12\%.$Choose five of the following seven questions to answer$\mathrm{.}1.$ Determine the required rate of return for its bonds, the amount of tax savings, and the after tax cost of debt$\mathrm{.}2.$ Determine value per unit of bond, and total market value of all bonds outstanding$\mathrm{.}3.$ If risk$-$free rate goes up from $3\%$ to $4\%$ due to inflation, what is the new value of each unit of bond? What is the rate of change in the value of the bond? What is the duration of the bond? $($You may make up the settlement date and maturity date that reflects the maturity of the bond.$)4.$ Estimate the undiversifiable risk of XYZ stock. Determine beta of XYZ stock$\mathrm{.}5.$ Use the security market line or the capital asset pricing model to determine the risk premium for stock XYZ$.$ and the required rate of return of the stock. PLEAASE SHOW WORK ON EXCEL