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How many bonds did bananic issue

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Bananic Ltd. raised $30 million by issued a 10-year, 7 percent semi-annual coupon bonds one year ago. The bond was rated grade A when issued at par. Today, the yield-to-maturity (YTM) of the bond yields an effective annual rate of return of 12 percent.

Problem a) How many bonds did Bananic issue?

Problem b) Is the bond a premium bond or discounted bond today? Explain your answer without any calculation.

Problem c) Determine the bond price today.

Reference no: EM132724413

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