The company issued 1000 redeemable bonds. Each bond is with R100. The bond pays a coupon at a rate of 12% per annum. The coupons are paid semi-annually. The bond will mature in 10 years’ time and be redeemed at 10% premium. If the market for similar bonds pays 10%, what is the current value of the bond?

Answer rating: 100% (QA)

To determine the current value of the bondwe need to consider both the coupon payments and the redem... View the full answer