What is the value of each dividend

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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?

Reference no: EM131556295

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