FDC also has debt You are considering purchasing $600,000 face value of 10% coupon bonds with 5 years to maturity. The market rate that you can earn elsewhere for similar risk is 6%. Interest is paid semiannually.

1.How much would you pay? What is the amount you would be willing to pay for this bond investment in dollars and as a percent of par

2.Forget that the 6% market rate. If the price were 90% of par, and you purchased the bonds, what would your Yield to Maturity be?