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Assume Hamburgers & Hotdogs Inc wants to raise money to buy assets by selling bonds. You are interested in buying a Hamburgers & Hotdogs bond.
Assume Hamburgers & Hotdogs Inc wants to raise money to buy assets by selling bonds. You are interested in buying a Hamburgers & Hotdogs bond. Assume the following on the bond:
coupon rate per year, paid annually
market interest rate YTM or return on investments of like risk per year. In other words, you want an return on the bond. The market rate will remain at for the next three years.
bond has three years until maturity In other words, the bond matures years from today.
par value $
you can buy the bond today for $current price is $
What is the interest payment that you will receive each year in year year and year The interest payment will be the same each year, so you only have to write it once.
Please put your answer on the blank line on the answer sheet. Please record your answer in dollars and cents.
What is the cash flow interest only that you WANT to receive each the first year based on the returm? Do it just like I did it my bond presentation.
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