(in one page ) read a case and answer question
February 22, 2021
Risk analysis and global business
February 22, 2021

Bond Pricing

1 or 2 page a plus excell

  • Assume that UPC is issuing a 10-year, $10,000 par value bond with a 6% annual coupon if its required rate of return is 6%. What is the value of this bond? Show your calculations in the Excel file.
  • If the coupon rate changes to 7%, would UPC be issuing a discount or a premium bond? Show your calculations in the Excel file.
  • If the coupon rate changes to 5%, would UPC be issuing a discount or a premium bond? Show your calculations in the Excel file.
  • What are the values of the 5%, 6%, and 7% coupon bonds over time if the required return remained at 6%? Complete the table for years 1 to 8.
  • Assume that UPC was successful in generating $15 million from its bond issue. Design a strategy for the financing of project C. Respond using a Word document.

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