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Years to Maturity: 20 Years; required return: 7.50%; amount needed: $50,000,000; Face Value: $1,000; Coupon rate: 7.50%; Tax rate: 35%; year bond is called: 7;
Years to Maturity: 20 Years; required return: 7.50%; amount needed: $50,000,000; Face Value: $1,000; Coupon rate: 7.50%; Tax rate: 35%; year bond is called: 7; Spread above treasury: 0.40%; Treasury rate at call: 4.80%; treasury rate at call: 8.20%.
Please calculate on excel:
Price of coupon bond
# of coupon bonds needed
Repayment of coupon bonds and # of zeros needed
Repayment of coupon bonds and repayment of zeros.
That is all the information that was given.
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