How much interest will pay if sells the entire issue

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Bond Practice Exercises

Question 1: A company issues bonds in the international market. It will pay interest every six months at a rate of 5.75% per annum. If the issue is $1 billion, how much interest will it pay if it sells the entire issue?

Question 2: Microhard issued a bond with the following characteristics: Par: $1,000; Maturity: 20 years; Coupon: 8%; Payments: semiannual. Calculate the price of the bond if the rate is:

a) 8%

b) 10%

c) 6%

 

Reference no: EM132934010

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