A company issues bonds with a coupon rate of 8%, due in 10 years. The total bonds issued equals $1,000,000. On the day of issuance, other bonds are selling at 7%. Interest is paid annually.
Will these bonds need to be issued at par, premium or discount?
What is the price for the package?
If bonds are issued for $1,000 each, what is the price of an individual bond?