Ajax Company issued a $10,000,000 dollar bond on Oct 1, 2019, with a coupon rate of 8.84% and a market rate of 7.44%. The bonds have a 30-year maturity and interest on the bonds are paid semi-annually on April 1 and Oct 1. Answer the following questions regarding this bond:

What is the face value of this bond?

How many bonds are being issued?

What is the is issue price of these bonds?

What is the semi-annual amount of interest on these bonds?

What is the maturity date of these bonds?

Are these bonds selling at par value; a discount or premium? Explain?

What is the current yield on this bond?

Define Yield-to Maturity How much accrued interest must the company report as of December 31, 2019?

What is the YTM on this bond?

True or False When the coupon rate is less than the market rate the bonds will sell at a premium. Explain!

What would Ajax want to do if the interest rates begin to increase? Explain

Explain why a company would want to issue bonds and not stock.