What do the following terms mean - par value, maturity date

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Questions: Milo is a personal investment client of yours. He owns and operates a large corporation in the area and is looking to raise funds to expand his operation. He is considering all his options, including issuing a corporate bond. He has come to you for some advice regarding corporate bonds. Please advise on him on the following: (10 points)

What do the following terms mean - par value, maturity date, coupon rate, coupon payment, and bondholder?

If Milo's corporation issues a $20,000 10-year bond that pays a 5% coupon, how much will the company be required to pay as a semi-annual coupon payment? What is the total cost to the corporation?

Milo is also considering issuing a Treasury Bill, what two differences between a Treasury Bill and a Bond?

Reference no: EM133331578

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