Anewly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $800. what will be an investor’s taxable income from the bond over the coming year? the bond will not be sold at the end of the year. the bond is treated as an original issue discount bond.

A$100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, the six-month libor is exchanged semi-annually for 12% per annum. the six-month libor rate in swaps of all maturities is currently 10% per annum with continuous compounding. the six-month libor rate was 9.6% per annum two months ago. what is the current value of the swap to the party paying floating? what is its value to the party paying fixed?