Hi there can I please get help with question 25

QUESTION 25 Garey Ltd has just issued debentures with a face value of $100,000. The current market yields are 8% per annum. The debenture pays 10% per annum half-yearly coupons and on issue has 10 years to maturity. (a) Calculate the price of the debenture on issue. (3 marks) (b) As an investor you have purchased a debenture on the date of issue. You have held it for 2 years and have watched the current yield fall to 6% p.a. If you were to sell the debenture after holding it for 2 years calculate how much profit or loss you would make from its sale. (4 marks) (c) With respect to the risk associated with investing in a debt security explain the major difference between debentures and unsecured notes. From the investor's point of view what is the implication of this difference if a company that has issued both debentures and unsecured notes goes into liquidation