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a. Explain the following Bond terms Par value Coupon Rate Maturity Issue Date Default risk What is the value of a 6year, 10% coupon bond

  1. a. Explain the following Bond terms
    1. Par value
    2. Coupon Rate
    3. Maturity
    4. Issue Date
    5. Default risk

  1. What is the value of a 6year, 10% coupon bond with a par value of $15,000 if Required Return (cost of capital) is 8%. Show the cash flow diagram, table.

  1. If the bond was offered to you for $19,000 would you buy it? Explain the reason for your answer.

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