Question
A company has $100 million book value of debt. You look on Morningstar FINRA and you see that there is a single bond issuance, trading
A company has $100 million book value of debt. You look on Morningstar FINRA and you see that there is a single bond issuance, trading at $110 (on a face value of $100). It is a 10 year bond, with 4.5% annual coupon. What is the market value of the debt , in millions and the yield to maturity of the bond, in percentage?
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Public Finance
Authors: Steven G. Medema, Carl Sumner Shoup
1st Edition
0202307859, 978-0202307855
