Question: need help solving AIAL currently has six different bond issues outstanding. One of these, AIA130, was used to borrow $150 million a number of years

 need help solving AIAL currently has six different bond issues outstanding.

need help solving

AIAL currently has six different bond issues outstanding. One of these, AIA130, was used to borrow $150 million a number of years ago. The face value of each bond is $1.00 and the coupon rate on each bond is 5.52% p.a. Interest on the bond is paid semiannually. The minimum holding is 10,000 bonds. Imagine you own 10,000 AIA130 bonds: a. Calculate the amount of each interest payment you will receive on your bond investment. b. The current market price of each AIA 130 bond is $1.0921, meaning your bonds are actually worth $10,921.00. What does this tell you about market interest rates? c. The current market price of each AIA130 bond is $1.0921 meaning your bonds are actually worth $10,921.00. Explain why someone would be willing to pay you an extra $921 for 10,000 bonds that state they are each only "worth" $1.00. d. If you had bought your AIA130 bonds for $10,100 a year ago and sold them today, what would be the approximate return on your investment? (You can ignore the time-value-of-money for this question)

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