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In 2019, Hasbro issued four tranches of notes, totaling $2.375 billion to help finance its acquisition of Entertainment One. These notes were issued: A. at
In 2019, Hasbro issued four tranches of notes, totaling $2.375 billion to help finance its acquisition of Entertainment One. These notes were issued:
- A. at a slight discount to par value
- B. as "bearer" notes
- C. at par value
- D. at a slight premium to par value
If two bonds have the same maturity date in eight years, and Bond G is currently selling for $1,015, while Bond H is currently selling for $900, which bond will sell for its par value more quickly, if interest rates do not change?
- A. Bond G
- B. They will both reach the $1,000 par value at the same time.
- C. Bond H
- D. Neither will reach $1,000 par value if interest rates remain unchanged
If a company issued a bond when prevailing interest rates were 6%, how would it typically satisfy an annual sinking fund provision if current interest rates are now 8%?
- . A. Purchase the bonds for the par value of $1,000 per bond.
- B. Purchase the bond in the open market.
- C. Redeem the bond at its call price.
- D. Set aside an appropriate amount of money with the bond trustee.
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