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Cash Flow Stream A company is in need of extra funds, so it considers issuing a bond. In the bond, the company promises to pay
Cash Flow Stream
A company is in need of extra funds, so it considers issuing a bond. In the bond, the company promises to pay back as follows:
tableYearCash flow $ million
The interest rate is per year.
a What is the present value value today of the cash flow stream that the bond provides?
b How much fund is the company able to raise today by issuing the bond?
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