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…


CB-W rated strengthening has issued debentures each delay a visage rate of $1,000 delay a fixedcuriosity-behalf annual coupon of 9 %t per annum and a ripeness of 3 years. The debenture present name is $1,080.19 a) Show that the traffic allow on the association is 6%. (4 marks) b) What is the term for the over association? (4 marks) c) You are expecting the Reserve Bank of Australia to fluctuate curiosity-behalf rates to 5%. Using the term arrangement what get be the new figure of the association? (2 marks) Note: If you did not defense (b) use a term of 2.5 years.

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