Question: The face value is AED 82.000, the stated rate is 10%, and the term of the bond is eight years. The bond pays interest semiannually.

The face value is AED 82.000, the stated rate is 10%,

The face value is AED 82.000, the stated rate is 10%, and the term of the bond is eight years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. (10 Points) a. b. What is the PV of the bond? (3 Pts). AED What is the PV of the interest payments? (3 Pts). AED How much would the bond sell on the bond market? (2 Pts). AED Is this bond a Premium, Discount or Par bond? Explain. (2 Pts) C d

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