A large corporation issued both fixed and floating-rate notes 5 years ago, with terms given in the

Question:

A large issued both fixed and floating-rate notes 5 years ago, with terms given in the following table:

A large corporation issued both fixed and floating-rate notes 5

a. Why is the price range greater for the 9% coupon bond than the floating-rate note?
b. What factors could explain why the floating-rate note is not always sold at par value?
c. Why is the call price for the floating-rate note not of great importance to investors?
d. Is the probability of a call for the fixed-rate note high or low?
e. If the firm were to issue a fixed-rate note with a 15-year maturity, what coupon rate would it need to offer to issue the bond at par value?
f. Why is an entry for yield to maturity for the floating-rate note notappropriate?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Coupon Rate
A coupon rate is the yield paid by a fixed-income security; a fixed-income security's coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value. The coupon rate, or coupon payment, is the yield...