Use the Information for the Question(s)below

question 109

Essay

Use the information for the question(s)below.
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years.The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
-How much are each of the semiannual coupon payments? Assuming the appropriate YTM on the Sisyphean bond is 8.8%,then at what price should this bond trade for?

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Definitions:

Normative Influence

A type of social influence that leads individuals to conform in order to be accepted and liked by others.

Informational

Relating to or providing information; designed to convey knowledge or provide explanations.

Groupthink

An occurrence within a group where the need for agreement or adherence leads to illogical or ineffectual choices.

Deindividuation

A psychological state where an individual loses self-awareness and a sense of individuality, often leading to disinhibited behavior, usually in group settings.