A 10-year corporate bond has a face value at the end of 10^th year of $2,000. It pays 12% per year interest. The interest payments (dividends) are collected once every 4 months.
a) What is the price of this bond today?
b) What is the value of each dividend?
c) If you decide to sell the bond after holding it for 7 years and collected all the interest payments (dividend) up to end of 7^th year, what is the value of bond at end of 7^th year?