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What is the initial price of the bond

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Reference no: EM132992089

Question - One of Amazon's outstanding bonds has the following terms (original 8-k provided but not necessary to solve the problem:

Bonds was offered on May 12, 2021

Face value (principal) of $3000 million due in May 12, 2031

Annual coupon rate of 2.10% paid on each May 12 and Nov 12, 2021 and ending on May 12, 2031

Market data (this information is not available in 8-k form)

The price of the bonds at issuance (May 12, 2021) is $99.982 per $100.00 of face value.

Required -

What is the coupon rate per six months and what coupon value in dollar to be paid each six months?

What is the initial (at issuance) price of the bond given that the face value is $ 3,000 million and the market quotation is $ 99.982 per $ 100.00 of face value?

What is the yield to maturity as of May 2, 2021 for this bond?

Reference no: EM132992089

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