1. PT Taehson plans to issue 6-year corporate bond with Rp4.N millions of par. It will offer 10.N8% coupon paid quarterly. The company expects the current YTM for its bond is 8.N4%. a. Calculate the bond price if the company issues its bond today! Is it at premium or at discount? b. Explain briefly, how does interest rates affect bond prices? C. When is the bond price equal to its par? d. Explain briefly the effect of coupon payment frequencies (such as monthly, quarterly, or annually) on bond prices.

It PT Taehson plans to issue 6-year corporate bond with Rp4.N millions of par. will offer 10.18% coupon paid quarterly. The company expects the current YTM for its bond is 8.N4%. a. Calculate the bond price if the company issues its bond today! Is it at premium or at discount? b. Explain briefly, how does interest rates affect bond prices? C. When is the bond price equal to its par? d. Explain briefly the effect of coupon payment frequencies (such as monthly, quarterly, or annually) on bond prices