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Ghana Cocoa Limited has a 6 percent coupon bond outstanding. Ghana Bauxite Ltd has a 14 percent bond outstanding. Both bonds have 8 years maturity
Ghana Cocoa Limited has a 6 percent coupon bond outstanding. Ghana Bauxite Ltd has a 14 percent bond outstanding. Both bonds have 8 years maturity and make semi-annual payments. i. How much should an investor who has a required rate of return of 10% pay for GH10,000 worth of each bond? If the interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
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