Homework Answers
Answer:
Total Bond Amount T=30 millions
Coupon rate C=1.5%
Years to Maturity N=20 Years
A)
Interest paid every year =T*C=30 millions *1.5%=$0.45 millions
B)
Total amount paid at end of 20th Year = Bond Amount + Interest Paid every year=30+0.45=$30.45 millions
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