Question: a) Positive Mindset Limited (PML) is evaluating financing options as they finalize plans to expand into Central America. They have decided to issue a 42
a) Positive Mindset Limited (PML) is evaluating financing options as they finalize plans to expand into Central America. They have decided to issue a 42 -year bond series as per the approval of the board of directors. The bonds will be issued on January 1, 2026 and will mature on December 31, 2067. The bonds will have a $1,000 par value and will pay semiannual coupons at a rate of 11.5% per annum. Coupons will be paid semi-annually. 1.) Hii.) Calculate the current yield and yield to maturity on the bonds on January 1.2048, if they were selling for $1,028.50 at that time. (9Marks)
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