In: Finance
Green bonds are bonds issued by a company to fund renewable energy projects. Kuzlon India had raised financing for investing in wind power projects by issuing green bonds with 10 years as time to maturity. The green bonds were semi-annual bonds with a 10% p.a (EAR). coupon rate AAA rated. The Face value of the bonds was ₹1000. Since, these bonds enabled capital raising for projects with environmental benefits, the green bonds were issued at a premium. The yield to maturity of the bond was 8% p.a (EAR). What are the per period (semi-annual) coupon rates and per period (semi-annual) yield to maturity? What is the price of the bond today? Note: EAR is the effective annual rate