Fixed income corporation, Fixed Income Corporation just

Fixed income corporation

Reference no: EM13747833

Fixed Income Corporation just issued 10-year $1000 bonds with a coupon rate of 5.5% per annum.

[A] If you required a return of 6% per annum and the coupons are paid annually, what would you be willing to pay for one of these bonds?

[B] If you required a return of 6% per annum and the coupons are paid semi-annually, what would you be willing to pay for one of these bonds?

[C] Would you buy Hill Corporation bonds from (b) (Semi-annual coupon) if they were trading at $900? Why?

[D] Briefly explain what is meant by investment risk?

Reference no: EM13747833

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