Question: Java Spirit Ltd. is seeking financing for a new initiative it is contemplating. It intends to issue a new series of bonds on January 1,

Java Spirit Ltd. is seeking financing for a new initiative it is contemplating. It intends to issue a new series of bonds on January 1, 2022, with a $1,000 par value. They are expected to mature in 25 years and will have a coupon rate of 7%, paid semi-annually. a) What is the expected maturity date of the bonds? b) What is the expected price of the bond on December 31, 2029, if interest rates were 10%? How would the bonds be classified? d) What is the bonds expected price on June 30, 2042, if interest rates had fallen to 5%? HOW WOULD YOU CLASSIFIED THIS BOND

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