3. Bond ratings (S24.1) It is 2030 and the yields on corporate bonds are as follows: 8%...

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3. Bond ratings (S24.1) It is 2030 and the yields on corporate bonds are as follows:

8% 10% 12%

Tau Corp wishes to raise $10 million by an issue of 9% 10-year bonds. What will be the likely issue price (as a percent of face value) if Tau is rated

(a) Aaa,

(b) A, or

(c) Ba?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:04 AM

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3. Bond ratings (S24.1) It is 2030 and the yields on corporate bonds are as follows: 8%...

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Principles Of Corporate Finance

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