2. (Bond valuation) Jasper Corp. is about to issue a 30 year bond with the following terms: $1,000 face value, an 8% cou
Posted: Sun Jul 03, 2022 12:57 pm
2. (Bond valuation) Jasper Corp. is about to issue a 30 year bond with the following terms: $1,000 face value, an 8% coupon payment paid annually, and a required market return of 5.5%. What should be the price of this bond? 3. (Bond term) You are considering buying a bond with the following terms: $1000 face value, a 5% coupon rate with semi-annual payment, selling at 95% of face value. How long will the term of this bond be if you require a 6% return? (Round up to nearest half-year.)