Question
To raise $6,000,000 to expand into new markets, a very successful laptop manufacturing company issued bonds with a coupon rate of 3.50% compounded semi-annually, paying
a. If the fund was earning 2.75% compounded semi-annually, calculate the periodic cost of the debt. Round the sinking fund payment up to the next cent
b. Calculate the book value of the debt at the end of 7 years.
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Get StartedRecommended Textbook for
Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
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