Issues a two-year corporate bond

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Reference no: EM13976112

Mt. Langi issues a two-year corporate bond on 31 December, 2012 at the coupon rate of 10.5%, with a face value of $100 and interest paid semi-annually. One year later, the 2-year government bond remained unchanged at 4%, and the risk profile of Mt Langi to add to this risk free rate as compensation has not changed, at 6.5%.

What would be the market price of the Mt Langi 2-year bond one year prior to maturity? (Roundup to two decimal places)

Reference no: EM13976112

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Issues a two-year corporate bond : Mt. Langi issues a two-year corporate bond on 31 December, 2012 at the coupon rate of 10.5%, with a face value of $100 and interest paid semi-annually. What would be the market price of the Mt Langi 2-year bond one year prior to maturity?

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