What would be the change in bond price and quantity of bonds

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Queenie Ltd is considering raising $1.5 million to fund its expansion project. The bond has a face value of $1,000, maturity of 6 years and the coupon rate of 8.5% p.a. Coupon payment is made semi-annually. The company expects to sell the bond with the yield to maturity of 9%.

Problem 1: What is Queenie's expected bond price? (Please clearly state the bond's features in your answer. Round up bond price in dollars)

Problem 2: How many bonds does Queenie need to issue to finance the project?

Problem 3: If investor expects a higher return on this bond, what would be the change in bond price and the quantity of bonds to be issued under this project

Reference no: EM132977077

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