Question: Solve using an easy to understand approach 46. A bond has a nominal value of $50m. It pays annual interest of $4m in the form

Solve using an easy to understand approach

46. A bond has a nominal value of $50m. It pays annual interest of $4m in the form of two equal payments on 30 June and 31 December. The bond is trading at $115 per $100 nominal on 1 January 20X2 and is redeemable at a 10% premium on 31 December 20X3. How much in $m must the issuer pay the bondholder on 31 December 20X3? *

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