Question: On July 1, E-Way cafe issues $1,000 2 year bonds with a coupon of 3%. At the time of sale the effective Interest is

On July 1, E-Way cafe issues $1,000 2 year bonds with a

On July 1, E-Way cafe issues $1,000 2 year bonds with a coupon of 3%. At the time of sale the effective Interest is 4%. Interest is to be paid semi arinually What type of bond is it? What is the present value ($) of the bond? Principal Coupon Real Interest rate Term Interest Payment Interest amount s Present Value interest B Present Value Principal *Total Present Value of Bond (A)

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