Question
An firm is issuing a bond with the following characteristics: Face value = $10.0 million Annual coupon = 5.6% Market yield at issuance = 6.5%
An firm is issuing a bond with the following characteristics: Face value = $10.0 million Annual coupon = 5.6% Market yield at issuance = 6.5% 5 year maturity Ignoring flotation costs, at issuance the bond will increase:
| cash flow from investing by $9.626 million. | ||
| liabilities by $10.0 million. | ||
| assets by $9.626 million. |
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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
