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. . The purpose of this calculation question is for you to compute the fair value of the financial liabilities of XYZ Company. XYZ Company
. . The purpose of this calculation question is for you to compute the fair value of the financial liabilities of XYZ Company. XYZ Company has only 1 financial liability. It is a non-callable publicly traded bond. Here are your facts to input into this question: Maturity value of the bond = $230,000,000 Coupon Rate for the bond is 5.68% paid semi- annually. Bond matures on the last day of the firm's financial year. Last Financial Year end the yield to maturity was 4.80% based on periodic compounding (not EAR) Last Financial Year end bond had exactly 18 years to maturity This Year Financial Year end the yield to maturity demanded by the market is 4.20% (based on doubling the periodic rate) Required: Compute the fair value of the bond to be reported on this year's balance sheet. Round to the nearest dollar and do NOT include the dollar sign in your response
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