Question
Given three bond prices of a firm listed below with its coupon rate and maturity date, how can the market value of debt of the
Given three bond prices of a firm listed below with its coupon rate and maturity date, how can the market value of debt of the firm be calculated? Assume the firm's total book value of debt is $1.5 million.
| Publicily Traded Company Bond | ||||
| Coupon | Maturity | S&P | Moody's | Price |
| 3.75% | 9/25/2027 | BB+ | Ba2 | $ 98.241 |
| 4.00% | 4/26/2030 | BB+ | Ba3 | $ 96.626 |
| 5.00% | 12/5/2030 | BB+ | Ba4 | $ 97.214 |
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Public Finance
Authors: Laurence S. Seidman
1st Edition
0073375748, 978-0073375748
