Question
You are an intern with Sirius XM Radio in their corporate finance division. The firm is planning to issue $50 million of 6% annual coupon
You are an intern with Sirius XM Radio in their corporate finance division. The firm is planning to issue $50 million of 6% annual coupon bonds with a 10-year maturity. The firm anticipates an increase in its bond rating. Your boss wants you to determine the gain in the proceeds of the new issue if the issue is rated above the firms current bond rating. To prepare this information, you will have to determine Siriuss current debt rating and the yield curve for their particular rating.
please solve the data case in page 236 BOOK CORPORATE FINANCE 4TH EDITION.
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