Question
Refer to the following information: Amount issued:$400 million Offered: Issued at a price of 101.50% plus accrued interest (proceeds tocompany 101.300%) through First Boston Corporation.
Refer to the following information:
Amount issued:$400 million
Offered: Issued at a price of 101.50% plus accrued interest (proceeds tocompany 101.300%) through First Boston Corporation.
Interest: 9.25% per annum, payable February 15 and August 15.
- Suppose the debenture was issued on September 1, 1992, at 101.50%. How much would you have to pay to buy one bond delivered on September 15? Don't forget to include accrued interest.
- What is the amount of the first interest payment?
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
4th Edition
0073527092, 978-0073527093
