Question
Assume that WES would like to replace its non-current lease liabilities (in 2021) with a new issue of bonds. Assume that the issue will have
Assume that WES would like to replace its non-current “lease liabilities” (in 2021) with a new issue of bonds. Assume that the issue will have a coupon rate of 5% with a 15 year maturity. Assume the bonds are semi-annual coupon bonds and each have a face value of $1,000 and the required rate of return for similar bonds in the market is 4.5%. What would be the issuing price of these bonds? How many bonds will WES have to issue in order to replace its non-current “lease liabilities”?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
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