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Q1. Valuing a bond issue Information. Omega is a property manager. On 1 June 2018, it listed 1,000 bonds carrying a coupon payment of 13.00

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Q1. Valuing a bond issue Information. Omega is a property manager. On 1 June 2018, it listed 1,000 bonds carrying a coupon payment of 13.00 percent p.a. with interest paid semi- annually at a face value of $100 and maturing on 1 June 2021. The bonds were issued at a yield set 6.36 percent higher than the 10-year Australian government bond rate (which was running at 6.00 percent p.a. in mid-2018), compounded semi-annually. Requirements. Answer the following five questions: Q1. What is the semi-annual interest payment? Q2. What is the semi-annual yield? Q3. What is the present value of the interest payments on one bond? Q4. What is the present value of the face value (principal) on one bond? Q5. What is the present value of the total bond issue

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