Complete b-e and show explanations
You are looking to purchase a $10,000 bond issued by Mexico in USD. It pays $500 annually and matures exactly 10 years from now.
A) What is Mexico’s current long term foreign currency credit rating by S&P? AA-
B) How much would you pay for this bond?
C) What rate did you use to make the calculation?
D) Why did you choose the rate?