Question
Great Nevada Inc. has 3 bond issues outstanding: Book value of issue Coupon rate YTM Price (%) $14,000,000. 5% 6% 91.62 $5,000,000. 7%. 4% 120.2
Great Nevada Inc. has 3 bond issues outstanding:
Book value of issue Coupon rate YTM Price (%)
$14,000,000. 5% 6% 91.62
$5,000,000. 7%. 4% 120.2
$32,000,000 6.5% 7% 94.7
1. What is the market value of the first bond issue?
2. What is the combined market value of all 3 issues?
3. What is the actual (pre-tax) cost of debt ?
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Sports Finance And Management Real Estate Media And The New Business Of Sport
Authors: Jason A. Winfree, Mark S. Rosentraub, Brian M Mills, Mackenzie Zondlak
2nd Edition
1138341819, 9781138341814
