Assume that a company issues a bond at 92 having a face value of $5,000 and a

Question:

Assume that a company issues a bond at 92 having a of $5,000 and a interest rate of 6%. The bond pays interest annually and has a five-year-maturity time frame, and bonds of similar risk are currently paying interest rates of 8%. The bond's issue price would be: $(blank) it would make an annual interest payment on the bond in the amount of $(blank), and at the end of five years, it would pay back the principal of $(blank). The total discount on the bond is $(blank). Because discounted bonds result in the company receiving less money up front, the bonds are actually costing the company more than just the periodic interest payments. For this reason, total interest expense equals the sum of total interest paid over the life of the bond and total discount on the bond. Total interest expense on this bond is $(blank).
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...