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The management of Netflix has approached your bank about borrowing $50,000,000 dollars in the form of a long-term bond. The bond would have a 30-year

The management of Netflix has approached your bank about borrowing $50,000,000 dollars in the form of a long-term bond. The bond would have a 30-year maturity and an 8% coupon rate. 


The first step is to calculate what the interest expense would be for this bond for Netflix on a monthly basis. Next, discuss what areas of the income statement and balance sheet would be impacted by this new debt and how.


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a To calculate the interest expense for the bond on a monthly basis we can use the following formula Interest expense Bond principal Coupon rate Numbe... blur-text-image

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