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d. Record each of the transactions II Analyzing Bond Pricing, Interest Rates, and Financial Statement Effect of a Following is a price quote for $200
d. Record each of the transactions II Analyzing Bond Pricing, Interest Rates, and Financial Statement Effect of a Following is a price quote for $200 million of 6.55% coupon bonds issued by Deere & c that mature in October 2028: Bond E9-47. Coupon/Maturity Price/YTM Issue/Call Information Ratings/Industry 123.962 4.178 6.550 A2/A This quote indicates that, on this day, Deere's bonds have a market price of 123.962 ( 123.962% a. Assuming that these bonds were originally issued at or close to par value, what does the above b. Does the change in interest rates since the issuance of these bonds affect the amount of interest c. If Deere were to repurchase its bonds at the above market price of 123.962, how would the d. Assuming that the bonds remain outstanding until their maturity, at what market price will the face value), resulting in a yield of 4.178%. market price reveal about the direction that interest rates have changed since Deere issued its bonds? (Assume that Deere's debt rating has remained the same.) expense that Deere is reporting in its income statement? Explain. repurchase affect its current income? Assume that the bonds were issued at face value (100) bonds sell on their due date of October 1, 2028
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