Question
Assume Kraft Heinz issue senior notes with a face amount of $1,600 million. It has a 4% annual coupon payable semiannually and a maturity of
Assume Kraft Heinz issue senior notes with a face amount of $1,600 million. It has a 4% annual coupon payable semiannually and a maturity of 8 years. Assume the investors desire a 5% annual market rate, what is the bond issuance price (in millions) and what is the discount(premium)?
Assume the investor desire a 3% annual market rate, what is the bond issuance price (in millions) and what is the discount(premium) in this case? Fill in the entries for these two cases of bond issuance.
| g | Annual coupon rate | 4% | h | Annual coupon rate | 4% | ||||
| Annual Market Rate | 5% | Annual Market Rate | 3% | ||||||
| Years | 8 | Years | 8 | ||||||
| Nper | 16 | Nper | 16 | ||||||
| Face (par) Value | 1,600 | Face (par) Value | 1,600 | ||||||
| Issue Price | Issue Price | ||||||||
| Discount/Premium | Discount/Premium | ||||||||
| Premium Case (in millions) | Cash | ||||||||
| Bonds Payable | |||||||||
| Premium | |||||||||
| Discount Case (in millions) | Cash | ||||||||
| Discount | |||||||||
| Bonds Payable | |||||||||
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Auditing Sustainable Development Goals Key Principles And Tools For Supply Chain
Authors: Barden Gonzalez
1st Edition
B0BZFDM86C, 979-8388651501
