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Problem: Valuing a Straight Bond at Rex Rex Company issued 200, CAD 1,000, 10-year corporate bonds on January 1, 2009. The bonds have a coupon
Problem: Valuing a Straight Bond at Rex Rex Company issued 200, CAD 1,000, 10-year corporate bonds on January 1, 2009. The bonds have a coupon rate of 12.0%, compounded semi-annually with interest payable on June 30 and December 31 . On the date of issuance, the market rate was estimated to be 11.0%, compounded semi-annually. REQUIRED: 1. How much should Rex Company raise on January 1, 2009? 2. How much would Rex Company have raised on January 1,2009 , if the market rate was 13.0%, compounded semi-annually
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