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1. A Klingon corporation issued a bond on March 17, 2009 with the following terms: Currency of denomination: Klingon MOOLAH (KML) Denomination: KML 100,000,000 Maturity
1. A Klingon corporation issued a bond on March 17, 2009 with the following terms: Currency of denomination: Klingon MOOLAH (KML) Denomination: KML 100,000,000 Maturity date: March 18, 2019, or an optional redemption date Redemption/payment basis: Redemption at par value Interest payment dates: March 18 and September 18 in each year Optional redemption dates: The issuer has the right to call the instruments in whole (but not in part) at par starting on March 18, 2012 Interest rate: Fixed rate for the first three years up to but excluding March 18, 2012: 1.5% March 18, 2012 - September 18, 2012 1.75% - 6-month KML LIBORBBA September 18, 2012 - March 18, 2013 1.75% - 6 month KML LIBORBBA March 18, 2013 - September 18, 2013 2.00% - 6 month KML LIBORBBA September 18, 2013 - March 18, 2014 2.00% - 6-month KML LIBORBBA March 18, 2014 - September 18, 2014 2.25% - 6 month KML LIBORBBA September 18, 2014 - March 18, 2015 2.25% - 6 month KML LIBORBBA March 18, 2015 - September 18, 2015 2.50% - 6 month KML LIBORBBA September 18, 2015 - March 18, 2016 2.50% - 6-month KML LIBORBBA March 18, 2016 - September 18, 2016 2.75% - 6-month KML LIBORBBA September 18, 2016 - March 18, 2017 2.75% - 6-month KML LIBORBBA March 18, 2017 - September 18, 2017 3.00% - 6 month KML LIBORBBA September 18, 2017 - March 18, 2018 3.00% - 6-month KML LIBORBBA March 18, 2018 - September 18, 2018 3.25% - 6 month KML LIBORBBA September 18, 2018 - March 18, 2019 3.25% - 6 month KML LIBORBBA d d ) ) ni atobni Answer the below questions. (a) What is meant by KML LIBORBBA? (b) Describe the coupon interest characteristics of this bond. the 1-month LIBOR on Sept 18, 2018 is 1.75%, what is the coupon reset ra period? What are the risks associated with investing in this bond if the investor's home currency is not the Klingon Moolah. OD 2 bro ni
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