7) Vanilla Ice Co. bonds pay an annual coupon rate of 10% and have 5 years to maturity. If investors' required rate of return is now 8% on these bonds?;a. Will the bonds be selling at a premium or a discount with respect to their $1000 face value? Why?;b. What is the price of the bonds?
Paper#25760 | Written in 18-Jul-2015Price : $17