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please show all work 3) Huron Investments issues 54 million in 15.000% bonds maturing October 29, 2040. The bond is callable October 29, 2023 at
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3) Huron Investments issues 54 million in 15.000% bonds maturing October 29, 2040. The bond is callable October 29, 2023 at a cal premium of 1.500% October 29, 2023 the prevailing yield is 1 250%. If Huron Investments calls the entire issue and replaces it with 1 250% bonds also maturing October 29, 2040 then Each semi-annual coupon payment will decrease by The present value of the decrease in coupon payments is The principal repayment at maturity will increase by The present value of the increase in the principal repayment is The present value of this decision to the company - to the nearest dollar - is The company should (CALL / NOT CALL) the bond Step by Step Solution
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