Calculate the price of the corporate bond to yield

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Singapore Airlines has 8% $100,000 debentures outstanding in the corporate bond market, with exactly 8 years left until maturity. The bonds pay coupons half-yearly.

  1. Explain what it means when a corporate bond is 'secured'? Explain the difference between a fixed and a floating charge over the security on a corporate bond.
  2. Calculate the price of the corporate bond to yield an investor 6% per annum, compounding half-yearly. 
  3. Explain why the price in part (b) is greater/less than the face value of the bond 

Reference no: EM133112782

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