Question: need done asap. (a) In July 2022, Splitit Ltd issued 200 10-year corporate bonds with a face value of $100,000 each. The bonds pay semi-annual
need done asap.
(a) In July 2022, Splitit Ltd issued 200 10-year corporate bonds with a face value of $100,000 each. The bonds pay semi-annual coupons at 6 % p.a. If the yield to maturity is 4.5 p% p.a., what will be the price of each bond? (4 marks)
(b) Was this transaction carried out in the money market or capital market? Justify you classification by explaining what distinguishes these two markets. (2 marks)
(c) Was Splitit Ltd undertaking direct or indirect financing? Justify your answer. (2 marks)
(d) Assume now it is October 2022, and Splitit bonds are trading at a discount, what must have happened to market interest rates? Why has this impacted the bond price? (2 marks)
please give full answer detailed and in writing, working out shown.
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