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Facebook plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Facebook has identified a company of similar
Facebook plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Facebook has identified a company of similar risk with an outstanding bond issue that has an & percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for S If interest is paid annually for both bonds, what must the coupon rate of the new bonds be in order for the issue o sell at par? What will be the current yield of this bond?
Facebook plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Facebook has identified a company of similar risk with an outstanding bond issue that has an & percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for S If interest is paid annually for both bonds, what must the coupon rate of the new bonds be in order for the issue o sell at par? What will be the current yield of this bond?
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