Thai Savings Bank Issues 100,000 Bonds as a Response to the Thai

question 3

Short Answer

Thai Savings Bank issues 100,000 bonds as a response to the Thai Central Bank's initiatives to increase domestic saving. The bonds have a face value of $40,000 each, a bond interest rate of 8% per year payable annually, and a maturity date of 14 years. What is the current price of a bond, if the market interest rate is 9% per year, compounded semiannually?

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Definitions:

Felony

A serious crime, typically involving violence, regarded as more severe than a misdemeanor, and generally punishable by imprisonment for more than one year or by death.

Misdemeanor

A criminal offense that is less serious than a felony and generally punishable by fines, penalties, or a short term in jail.

Negligent Liability

Legal responsibility for harm caused as a result of failing to act as a reasonable person would have acted under similar circumstances.

Certified Public Accountant

A professional accountant who has met certain education and licensing requirements and is qualified to perform accounting services for the public.