Question
Things Get Messi Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 20.00 year maturities with a coupon rate of
Things Get Messi Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 20.00 year maturities with a coupon rate of 7.50% APR with semi-annual coupon payments (assume a face value of $1,000 on the bond).
The current market rate for similar bonds is 5.70% APR. The company hopes to raise $38.00 million with the new issue.
Based on the current market rate, what will a new bond sell for?
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Financial Management Core Concepts
Authors: Ray Brooks, Raymond Brooks
1st Edition
0321155173, 9780321155177
