Question
The first project is a 360 apartment building, which has a construction period of 3 years at counting from 01/Jan/2021, date on which the project
The first project is a 360 apartment building, which has a construction period of 3 years at counting from 01/Jan/2021, date on which the project will be launched to the market. According to the projections, the blank sale will provide you with income of UF 7500 per month during the first year, UF15000 per month during the second year and UF22500 per month during the third year. The cost of this project is UF400,000 and the company is thinking of issuing a bond on 01/JAN/2021 at a coupon rate of UF + 4.13% simple annual, monthly and notional payments UF400.000. a) If the company allocates 100% of its income for debt payment, when should the maturity be of the bond issued? b) If the IRR at the time of issuance is 6%, what percentage of the project cost can be financed with this Bonus? c) How much should the notional and term of the bond be to raise the total cost of the project?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started