1. The company currently has $10.035 billion in long-term debt; assume $9.5 billion is in bonds. The company wishes to refinance its $9.5 billion bonds; therefore, it will reissue bonds. The structure of the new bonds is as follows: Maturity = 35 years, Coupon Rate = 3.5%, and they have a face value of $1,000 each. Similar bonds in the market have a yield-to-maturity (YTM) of 2.75%. What is the price of each bond? Are they trading at a discount or premium?

2. Assume fifteen years have passed and the YTM in the market has risen to 6.5%. What is the price of the bonds? Are they trading at a discount or premium?

3. Using the the same information as question 11, now assume that the bonds are semiannual bonds. What is the new price of each bond?

4.Assume Walmart took a $950 million loan and the agreement is to amortize it over 10 years. It is paying 4.0% on the loan. Please workout an amortization schedule.

5. As part of the companys strategic plan it plans to purchase a small, but popular on-line artisan store. The company estimates that the total value of the artisan store in 10 years will be $15 million, and it can earn 6.5% on its investment. How much will the company need today in order to have $15 million available in 10 years? Assuming, the company wants to save money every year instead, how much will it need to invest every year for the next 10 years to have $15 million available in 10 years?