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Totally lost here. Please show all work and explain how to do this so I can learn. Please don't just throw answers at me. Refer
Totally lost here. Please show all work and explain how to do this so I can learn. Please don't just throw answers at me.
Refer to the following information: | ||||||||
Amount issued | $400 million | |||||||
Offered | Issued at a price of 101.50% plus accrued interest (proceeds to company 101.300%) through First Boston Corporation. | |||||||
Interest | 9.25% per annum, payable February 15 and August 15. | |||||||
(1) Suppose the debenture was issued on September 1, 1992, at 101.50%. How much would you have to pay to buy one bond delivered on September 15? Dont forget to include accrued interest. | ||||||||
(2) What is the amount of the first interest payment? |
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