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Please answer the questions below based on a corporate bond with the following characteristics: Issuer: Bowie Corporation Standard and Poor rating:BBB Par value:$75,000 Coupon rate:9%
Please answer the questions below based on a corporate bond with the following characteristics:
Issuer: Bowie Corporation
Standard and Poor rating:BBB
Par value:$75,000
Coupon rate:9% per annum
Coupon payment:Paid annually
Maturity date:20 years - December 31, 2036
A) What is the dollar amount of the coupon payment every year? __________
B) Is the coupon payment a fixed or variable rate? ___________________
C) Is this bond investment grade? (Yes or No) ________________
D) What amount is Bowie promising to pay investors at maturity? ____________.
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