PENNY CORPORATION LIMITED
Promises to pay the bearer the sum of:
NZ$1,000,000.00
(One Million New Zealand Dollars)
on 5th September 2016
Plus interest, payable annually until maturity at a coupon rate of:
9% p.a.
R T Penny
R T PENNY
for and on behalf of Penny Corporation Limited (PCL)
Coupon Interest of $90,000.00 payable on
5th Sept 2016	Coupon Interest of $90,000.00 payable on
5th Sept 2015	Coupon Interest of $90,000.00 payable on
5th Sept 2014	Coupon Interest of $90,000.00 payable on
5th Sept 2013	Coupon Interest of $90,000.00 payable on
5th Sept 2012
Coupon Interest of $90,000.00 payable on
5th Sept 2011	Coupon Interest of $90,000.00 payable on
5th Sept 2010	Coupon Interest of $90,000.00 payable on
5th Sept 2009	Coupon Interest of $90,000.00 payable on
5th Sept 2008	Coupon Interest of $90,000.00 payable on
5th Sept 2007
Activity Schedule:
Date	Event	Calculation / Notes	Bond Value
5th Sept 2006	Penny Corporation Ltd (a AA rated public company) raises approximately $40,000,000 through the public issue of 10 year bonds carrying an annual coupon of 9%. Market rates for AA bonds on issue date are 9.5%	What is each bond worth?
How much does PCL receive?
5th Sept 2007	Market rates for AA rated debt issues have remained constant at 9.5%. You are considering selling your bond in order to free up some cash for another investment opportunity you’ve seen. You’ve just received interest	How much is the bond worth?
$
Why has this value changed?
5th Sept 2007	You’ve made you decision to sell. Unfortunately, the Reserve Bank of NZ raised the OCR by ½% before you did the deal and market rates for AA d ...