ACC00716 Finance: Business Case Studies 1 - Assessment 2

1. TVM and bond valuation questions (1 mark each):

f. Your company has an issue of $1,000 par value bonds that offer a 7% coupon rate paid semi- annually. The bonds have 6 years remaining until maturity. The market’s required return on these bonds is given in Table 1. What is the amount of each coupon payment?