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(10 marks) IMHO Inc. issues a 5 year bond with a 8.000% coupon and a $95,000,000.00 face value. The yield rate for the bond is
(10 marks) IMHO Inc. issues a 5 year bond with a 8.000% coupon and a $95,000,000.00 face value. The yield rate for the bond is 9.750% compounded daily.
a) What is the price of the bond initially?
b) Is the bond trading at a premium or a discount?
c) Fill out the first 3 rows of the bond amortization table.
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