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Use this table to answer the following questions: Amount issued $ 2 8 0 million Offered Issued at a price of 9 8 . 5
Use this table to answer the following questions:
Amount issued $ million
Offered Issued at a price of plus accrued interest proceeds to company through Citi and JPMorgan
Interest per annum payable June and December
Maturity June
Denomination, face value, or principal $
Callable Remaining payments discounted at the treasury rate basis points
AMAT decides to call the bond one year before it is due to expire. The interest rate on oneyear Treasury bonds is What price per bond must AMAT pay to call the bonds?
Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to decimal places.
If the interest rate on Treasury bonds is What price per bond must AMAT pay to call its bonds? Hint: AMAT will pay the greater value between the par value and the PV of remaining payments
Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to decimal places.
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