Question
Krabby Patty Inc. is taking its regional chain national. To do this, it will need to raise money. On February 1st, 2021, Krabby Patty Inc.
Krabby Patty Inc. is taking its regional chain national. To do this, it will need to raise money.
On February 1st, 2021, Krabby Patty Inc. issued 30-year corporate bonds. Assuming the yield-curve that day showed the below rates and that Krabby's Bond rating meant it had to pay 8% to attract investors. How much did Krabby Patty Inc. pay (combined) for Default and Liquidity premiums?
5 yr | 0.44 % |
7 yr | 0.81 % |
10 yr | 1.12 % |
20 yr | 1.61 % |
30 yr | 1.8 % |
State your answer as a percentage to two decimal places, do not enter the % symbol
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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