What is the bond''s value if it is sold on the maturity date

Reference no: EM133325623

An outstanding bond from, "Delectable Treats" Chocolate Factory, a chocolate delicacy manufacturer, has a coupon interest of 6% that is paid semi-annually, a par value of $1,000 and will mature in the next 10 years. The required rate of return for similar investments is currently 8%.

Question a) What is the bond's value if it is sold three years before it matures and interest is paid annually?

Question b) At what price should the bond be sold if it was purchased on 1^stMarch 2018, is due to mature on 29^thFebruary 2028 but was instead sold on 1^stMarch 2022?

Question c) What is the bond's value if it is sold on the maturity date?

Question d) Provide a brief description for the following bond characteristics:

a. Coupon interest rate

b. Par Value

c. Term Structure of Interest Rates

d. Bond Yields

e. Tenor

f. Duration of the bond

g. Bond Rating

h. Maturity Date

Reference no: EM133325623

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