SCQ Holdings Limited issued the 16-year bond on 13 September 2011 paying 14.2% per annum in semi-annual coupons. Today is 14 September 2016, and Steph White is thinking of purchasing $163 000 face value of SCQ bond. The quantity of bond is expressed in face value, and $163 000 is not essentially amount paid for it.
i) If Steph makes that purchase, write date and amount of next 3 coupon payments she must receive.
ii) If Steph can select between investing in the bond or in other securities of similar risk which are paying 7.3% per annum (effective), how much is maximum she must be eager to pay to buy bond?