An international bank loaned money to an emerging country a few years ago. Because of the nonpayment

Question:

An international bank loaned money to an emerging country a few years ago. Because of the nonpayment of interest due on this loan, the bank is now negotiating with the borrower to exchange the loan for Brady bonds. The Brady bonds that would be issued would be either par bonds or discount bonds, with the same time to maturity.
a. Would both types of bonds, par and discount, provide debt reduction to the emerging country?
b. Would both types of bonds, par and discount, have a lower amount than the original?
c. Of the two types of bonds being considered, which one would have a lower amount?
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...