Question: YOUR BANK is thinking to issue a regular coupon bond (deben- ture) with following particulars: Maturity = 5 years, Coupon rate = 8.000%, Face value

YOUR BANK is thinking to issue a regular coupon bond (deben- ture) with following particulars: Maturity = 5 years, Coupon rate = 8.000%, Face value = $1,500.00, Coupon payments are annual at the end of year. In the fixed-income securities market, the yield curve for the bond similar to the one issued by YOUR BANK, is flat and it is 7% per annum continuously com- pounded. As per you, what should be the issue (offer) price per bond of YOUR BANK?

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