Homework Answers
Requirement 1
|
a. The price of the 200000 bond issued at 74.50 is |
$ 1,49,000.00 |
|
a. The price of the 200000 bond issued at 104.50 is |
$ 2,09,000.00 |
|
a. The price of the 200000 bond issued at 94.75 is |
$ 1,89,500.00 |
|
a. The price of the 200000 bond issued at 102.25 is |
$ 2,04,500.00 |
Working
|
a. The price of the 200000 bond issued at 74.50 is $ |
=200000/100*74.5 |
|
a. The price of the 200000 bond issued at 104.50 is $ |
=200000/100*104.5 |
|
a. The price of the 200000 bond issued at 94.75 is $ |
=200000/100*94.75 |
|
a. The price of the 200000 bond issued at 102.25 is $ |
=200000/100*102.25 |
Requirement 2
Correct answer—Friendship telecom will pay $200000 at maturity for all four of the bonds. The bonds all have the same maturity value.
Bonds are issued at premium, discount or at par but redemption is done at Face value.
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