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THESE BONDS PAY A SEMI ANNUAL COUPON!!! Part A: What is the maturity risk of a 20 year bond? Part B:What is the default risk

THESE BONDS PAY A SEMI ANNUAL COUPON!!!

Part A: What is the maturity risk of a 20 year bond?

Part B:What is the default risk premium for a CCC rated bond?

Part C: What should be the price of a 3 year BB bond that pays a semi-annual coupon of 4.4%?

Part D: What should the coupon rate be, if a company wants to issue 10 year semi annual bonds. The comapny is CCC rated?

Part E:A company has issued 5 year BB bonds that pay a semi-annual coupon of 4.4% the company hits financial diffculty and the bonds are downgraded to CCC. What was the change in the price of the bond?

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