Annual coupon rate of 10% and have 5 years to maturity

Reference no: EM13715239

7) Vanilla Ice Co. bonds pay an annual coupon rate of 10% and have 5 years to maturity. If investors'' required rate of return is now 8% on these bonds...
a. Will the bonds be selling at a premium or a discount with respect to their $1000 face value? Why?
b. What is the price of the bonds?"

Reference no: EM13715239

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