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Johny Bravo Inc only paid 13,000.00 for a 19,000.00 worth of mortgage bond. The bonds maturity date is 15 years from the year of issuance,
Johny Bravo Inc only paid 13,000.00 for a 19,000.00 worth of mortgage bond. The bonds maturity date is 15 years from the year of issuance, with the bond coupon rate of 9%, payable quarterly. Assuming that the bond is in default, it will not give a dividend for the next four years. If the bond dividend is paid for the 5 years (after Four years) and the company sells the bond for 15,000.00, draw the Cash Flow diagram with the functional symbols.
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