Deere \& Comparts botes, Interest Rates, and Financial Statement Effects below] Longterm borrowings at October 31 cansisted of the following in milions of dollars: (c) How much cash would Deere have to pay to repurchase the 7.125% notes at the quated market price of 131.477 (Assume no interest is twed when Decre ropuschuses the notes) flound your anwer to two decimal places. x milion How would the repurchase alfect Deere's current income? The tepurthose woudd rewitt in a loss an repurchase of debentures which would lower current pre-tax income 5ath and bonds payable boit decrease by the same amount. No gain or loss is recopnated The reputchate only affects cash liow, not ineope M rivilian Long-term borrowings at October 31 consisted of the following in millions of dollars: A recent price quote (from Yahoo! Finance Bond Center) on Deere's 7.125% notes follows Deere's 7.125\% notes have a market price of 131.47 (131.47\% of face value), resulting in a yield to maturity of 4.488%. (c) How much cash would Deere have to pay to repurchase the 7.125\% notes at the quoted market price of 131.47 (Assume no interest is owed whien D Round your answer to two decimal places, x milion How would the repurchase affect Deere's current income? The repurchase would result in a loss on repurchase of debentures, which would lower current pre-tax income. Eash and bonds payable both decrease by the same amount. No gain or loss is recognized. The repurchase only affects cash flow, not income. Income is not affected because the liability has been reported at fair value since inception. As a result, the repurchase price is equal to the book value and (d) Assuming that the notes remain outstanding until their maturity, at what market price will the notes sell on their due date in 2031 ? x million