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Green bonds are bonds issued by a company to fund renewable energy projects. Kuzlon India had raised financing for investing in wind power projects by
Green bonds are bonds issued by a company to fund renewable energy projects. Kuzlon India had raised financing for investing in wind power projects by issuing green bonds with ten years as a time to maturity. The .** green bonds were sqmi-annual bonds with an 8% p.a. (compounded semi- annually) coupon rate AAA rated. The Face value (par value) of the bond was *1000. Since these bonds enabled capital raising for projects with environmental benefits, the green bonds were issued at a premium. The yield to maturity of the bond was 6% p. a compounded semi-annually. What is the price of the bond today? What does the yield to maturity of the bond depend on? [5]
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