Question
Assume that you are analyzing various issues of outstanding long-term debt in the form of bonds for personal investment purposes in a specific company. The
Assume that you are analyzing various issues of outstanding long-term debt in the form of bonds for personal investment purposes in a specific company. The company has $1.2 billion in bonds outstanding and due in 2024. If you are evaluating these bonds in 2019 and assuming the bonds pay semiannual interest at the rate of 4.75%, what price should the bond sell for if the current market rate for a similar bond is 4.45%? As an investor, what, if any, additional evaluations would you make before investing in the bonds of this company? please provide supporting analysis
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