The ABC company issued 30 years bonds with the bullet maturity (means the full $1,000 on bond at the end of 30th year) 15 years ago (there is 15 years left to maturity) and pays annual coupon rate of 8% (suppose one interest payment a year). Answer the following questions on this bond supposing the market interest rate on similar risk bond is currently 6%/
What is the annual interest payment that the company has to make on each bond?
What is the present value of the interest payments on the bond?
What is the bullet maturity payment of principal that the company has to make when the bond matures?
What is the present value of the bullet maturity payment on the bond?
What does the bond trade now?