1. Calculate the price of a bond with Face value of bond is
$1,000 and:
a. Bond yield of 8.4%, coupon rate of 7% and time to maturity is
5 years. Coupon is paid semi-annually (Bond 1)
b. Bond yield of 7%, coupon rate of 8% and time to maturity is 4
years. Coupon is paid semi-annually
c. Calculate the price of Bond 1 right after the 5th coupon
payment.
2. Arcarde Ltd issues both ordinary shares and preference shares...