I already ask this but I whant know how you do the calculation, please could you show me all the step and the calculation. A bond that has features: Coupon rate of 5 percente Principal $1,000 Term to maturity 10 years. a. What will be the holder receive when the bond matures? b. If the current rate of interes on comparable debt is 8 percent, what should be the price of this bond? would you expect the firm to call this bond? why? c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how muest the firm remit each for ten years if the funds earn 8 percent annually and there is $100 million oustanding?

Question

I already ask this but I whant know how you do the calculation, please could you show me all the step and the calculation.

A bond that has features:

Coupon rate of 5 percente

Principal $1,000

Term to maturity 10 years.

a. What will be the holder receive when the bond matures?

b. If the current rate of interes on comparable debt is 8 percent, what should be the price of this bond? would you expect the firm to call this bond? why?

c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how muest the firm remit each for ten years if the funds earn 8 percent annually and there is $100 million oustanding?

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