Question
Things Get Messi Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 30.00 year maturities with a coupon rate of
Things Get Messi Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 30.00 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 5.64% APR. The company hopes to raise $54.00 million with the new issue.
Based on the current market rate, what will a new bond sell for?
Answer format: Currency: Round to: 2 decimal places.
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Better Than Alpha Three Steps To Capturing Excess Returns In A Changing World
Authors: Christopher M. Schelling
1st Edition
1264257651,126425766X
