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Determine the market price of the one of the bonds

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Question - Access Ltd is financing a new investment and was previously unsuccessful to secure a similar interest rate as they had with their previous debt from their local Bank. Given their AAA credit rating, they instead decided to issue 5000 units of a 10-year bond to fund the investment.

Coupon rate is set at 8% per annum and will be paid quarterly. The face value of one of the bonds is $1,000.

The estimated yield for similar bonds of comparable risk rating is 12% per annum.

Required - Determine the market price of the one of the bonds?

Reference no: EM133049617

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