Question
3. Please answer the questions below based on a corporate bond with the following characteristics: Issuer: Bowie Corporation Standard and Poor rating: BBB Par value:
3. Please answer the questions below based on a corporate bond with the following characteristics: Issuer: Bowie Corporation Standard and Poor rating: BBB Par value: $75,000 Coupon rate: 9% per annum Coupon payment: Paid annually Maturity date: 20 years December 31, 2036 A) What is the dollar amount of the coupon payment every year? __________ B) Is the coupon payment a fixed or variable rate? ___________________ C) Is this bond investment grade? (Yes or No) ________________ D) What amount is Bowie promising to pay investors at maturity? ____________.
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