Question
2. It is 15th January, and the MMOBA Bond is quoted at GHS110.00. The bonds coupon rate is 18% which is paid semi-annually. Interest payment
2. It is 15th January, and the MMOBA Bond is quoted at GHS110.00. The bonds coupon rate is 18% which is paid semi-annually. Interest payment dates are 30th June and 31st December of every year.
Required:
a. Calculate the interest that has accrued since the last interest payment.
b. If an investor is buying this bond today, what price would she pay?
c. If the face value of the bond is GHS100, would you say that the bond is currently trading at a discount?
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Accounting Concepts And Applications
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain
10th Edition
0324376154, 978-0324376159
