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Eighteen months ago, Malloch Industries issued a 5 -year 6.5% semi-annual bond, with a face value of $1000 (i.e., the third coupon payment has just
Eighteen months ago, Malloch Industries issued a 5 -year 6.5% semi-annual bond, with a face value of $1000 (i.e., the third coupon payment has just been paid). The current interest rate is 8.4%, compounded semi-annually. 1. What is the coupon payment? (Please round to 2 decimal places) $ 2. What is the current price of the bond? (Please round to 2 decimal places) 3. At the time of issuance, the interest rate was 7.0%, compoundid semi-annually. What was the price of the bond at the time of issuance? (Please round to 2 decimal places) 4. Malloch Industries raised $11 million in the issue. How many bonds were issued? (round to the nearest whole number) bonds
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