CB-W rated corporation has issued debentures each with a face value of $1,000 with a fixedinterest annual coupon of 9 %t per annum and a maturity of 3 years. The debenture current quote is $1,080.19 a 1

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CB-W rated confirmation has issued debentures each after a while a aspect esteem of $1,000 after a while a fixedshare annual coupon of 9 %t per annum and a ripeness of 3 years. The debenture popular cite is $1,080.19 a) Show that the dispense give-in on the tie is 6%. (4 marks) b) What is the space for the over tie? (4 marks) c) You are expecting the Reserve Bank of Australia to vary share rates to 5%. Using the space order what get be the new figure of the tie? (2 marks) Note: If you did not exculpation (b) use a space of 2.5 years.

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