Chapter 7 The Cayman Island Government has been given the go ahead by the MLA's to raise funding to build a new school in Cayman Brac. They will issue bonds internationally where the coupon rate is expected to be 8% and the going market(yield) rate is 10%. The money that they expected to raise should be $10 Million dollars. The bond will be for a period of 10 years and will pay interest semi-annually. Required: a) Compute the bond issue price. State whether the bond was issued at a discount, premium or par.(15points). b) What is the current yield of the bond? (5 points)