IMEX Global Solutions issued a bond on December 31, 2015 to the public which pays $80 once per year in interest and a $1,000 principal repayment after year 10, and is priced in the open market to reflect a required return of 11.5% to bondholders, or $798. The company’s management has the option of redeeming this bond early for $1,060 plus any accrued interest.
As it relates to the IMEX bonds, identify the following:
1. Face value
2. Market value
3. Coupon rate
4. Yield to maturity
5. Current yield
6. Call premium
7. Maturity