Question: Explain 2 (TWO) cash flows provided by a bond. (4 marks) Suppose today is the year of 2005, a company namely Alexis offers a 10-

  1. Explain 2 (TWO) cash flows provided by a bond.

(4 marks)

  1. Suppose today is the year of 2005, a company namely Alexis offers a 10- year bond with a coupon rate of 10% per annum. What is the price of the bond if the yield on the bond is 8% per annum and the face value is $20,000?

(10 marks)

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