Question: The face value is AED $2,000, the stated rate is 10%, and the term of the band is eight years. The band pays interest semiannually.

The face value is AED $2,000, the stated rate is 10%, and the term of the band is eight years. The band pays interest semiannually. At the time of issue, the market rate is 8% (10 points) 1. Wat is the PV of the bond? SPES). AED . What is the PV of the interest payments? Ps). AED How much would the bond selt on the bond market? (Pes). AED d. this bond a Premium, Discount or Par bond? Explain. 2 Pes

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