A company wants to issue a SGD 100 million 10-year straight bond, with a coupon of 5.5% paid semi-annually. The market interest rate for companies of similar standing is currently trading at 7%. At which price is the bond going to be issued, and how much funds are the company actually going to collect?
Help me do calcutions with workings and formula.
These are basically the questions I need help with: you can use the word file to type in the solution. Question 3b A company wants to issue a SGD 100 million 10-year
straight bond, with a coupon of 5.5% paid semi-annually. The market interest rate for companies of similar standing is currently trading at 7%. At which price is the
bond going to be issued, and how much funds are the company actually going to collect? Question 3d A GBP 500,000 180-day bill is purchased with a yield of 6% and sold
90 days later with a yield of 5%. A year has 365 days for GBP. (i) Calculate the annual and the effective rate of return over the holding period for this
investment. (6 marks) (ii) Explain the difference between these two rates.
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