Energy tech company issued an 8 semi-annual payment 20 year


Energy Tech company issued an 8% (semi-annual payment) 20 year bond 5 years ago.

a. If the yield of similar bond today is 6%, what is the bond price? What is the current yield?

b. If you expect company to call the bond 3 years from today and will pay the principal plus two years coupon interests as penalty what price you should pay for this bond?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Energy tech company issued an 8 semi-annual payment 20 year
Reference No:- TGS0981638

Expected delivery within 24 Hours