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Mt. Langi issues a two-year corporate bond on 31 December, 2012 at the coupon rate of 10.5%, with a face value of $100 and interest
Mt. Langi issues a two-year corporate bond on 31 December, 2012 at the coupon rate of 10.5%, with a face value of $100 and interest paid semi-annually.One year later, the 2-year government bond has fallen to 1%, though the risk profile of Mt Langi to add to this risk free rate as compensation has not changed, at 6.5%.
What would be the market price of the Mt Langi 2-year bond one year prior to maturity?(Roundup to two decimal places)
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