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C. ABC Education Ltd has a corporate bond outstanding with a 8% coupon, semi-annual interest, 15 years to maturity and a face value of $1,000.

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C. ABC Education Ltd has a corporate bond outstanding with a 8% coupon, semi-annual interest, 15 years to maturity and a face value of $1,000. Similar bonds currently yield 5%. By prior agreement, the company will skip the coupon payments during the period between 4 and 5 (4 payments; the payments at time 4 through to 5.5) as well as during the period between 11 and 13 (6 payments, the payment at time 11 through to 13.5). In total 10 coupons will be skipped and these payments will be repaid, without interest, at maturity. What is the company bond's value? Please draw the timeline. The correct timeline will be marked as well. (10 marks)

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