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ROFL Limited has asked you to calculate the debt component to help in its calculation of its weighted average cost of capital (WACC). ROFL has
ROFL Limited has asked you to calculate the debt component to help in its calculation of its weighted average cost of capital (WACC). ROFL has 4,000 Corporate Bonds outstanding with a face value of $93,000 each. The coupon rate is 5% p.a. compounding semi-annually. The bonds mature in 4 years and currently ROFL bonds are trading in the market at a yield of 7%p.a. If a coupon payment was paid today what is the total market value of ROFL's issued bonds? Provide your answer to the nearest dollar
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
2nd Edition
0133001873, 978133001877
