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1. Bridgeport Inc. would like to raise $20 million to invest in R&D over the next several years. The company plans to issue five-year bonds
1. Bridgeport Inc. would like to raise $20 million to invest in R&D over the next several years. The company plans to issue five-year bonds with a face value of $1,000 and a coupon rate of 7.65% (assume annual coupon payments). The following table summarizes the YTM for five-year coupon corporate bonds of various ratings. Rating YTM AAA 6.38% AA 7.02% A 7.65% BBB 8.01% BB 8.52%
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
3rd Edition
0324232624, 9780324232622
