You are interested in buying the bonds issued by Home Builders, a large firm in the construction industry. The bonds are going to reach maturity in March 2031. The bonds have a face value of dollars 1,000 and pay 6.5% coupon interest annually. The required rate of interest on this bond for you is the last digit of your student ID plus 2%. What price would you be willing to pay for this bond today? In this case, is it a premium, discount or par bond? For the same bond and interest rates in problem 1, what price would you be willing to pay if the bond will reach maturity in March 2021 (instead of March 2031). In this case, is it a premium, discount or par bond? Going back to the first problem (maturing in 2031), what price would you be willing to pay if Home Builders pays coupon interest semi-annually? In this case, is it a premium, discount or par bond? Going back to the first problem (maturing in 2031). what price would you be willing to pay for Home Builders Bond if your required rate of interest is the last digit of your student ID plus 4%? Comparing your answer to this problem with that of problem 1, what can you say about bond prices and required rates of interest? Build-Your-Own Company bonds have a maturity value of dollars 1,000, and pay 12% annual coupon. They mature in 2036 and are priced at dollars 1,345. Construction Inc., another company in the construction industry, also has dollars 1,000 maturity value bonds paying 7% annual coupon, maturing in 2036. and are priced at dollars 802. If you feel that both these bonds have the same risk, which one would you choose? Why? You are considering investing in preferred stocks issued by Sports Inc. The preferred stocks have 8% preferred dividend and dollars 40 par value. If your required rate is 12%, what price would you pay for the preferred stocks? Preferred stock issued by Sports Inc has a par value of dollars 40 and a preferred dividend of 8%. If an investor buys the shares for dollars 30. what is his rate of return on the preferred stock for the investor