4. SJU Corp. issued a 10 year bond at a price of $1,000 two years ago in the US. The bond pays an annual coupon
4. SJU Corp. issued a 10 year bond at a price of $1,000 two years ago in the US. The bond pays an annual coupon rate of 8% and the coupon interest is paid every six month. If the current market interest rate for this class of bond is 10%,
a. what is the value of the bond right now?
b. what was the market interest rate for the bond two year ago?
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Authors: Peter Howells, Keith Bain
4th Edition
0273710397, 978-0273710394
