You would need to solve for the PV of the current issue. New Issuance. You would also need to solve for the PV of new issue being considered. You will need to solve for the PV of the remaining issue at the time the new bond will be issued. Questions to address: 1. What factors might have enabled JLR to raise new debt at lower at less than half the coupon interest in 2015, compared with the debt raise in 2011? 2. Compute the amount at which existing bondholders might be willing to surrender their hold 3. Assuming JPR purchased all existing outstanding bonds at the price worked out in Q2; work incremental cash flows of this bond issue vis-a-vis the original issue. Does this financing strat in cost savings for JLR 4. What other benefits, if any, might accrue to JLR as a result of this financial strategy? Does this strategy add value to the firm? To the existing bondholder? To JLR's equity-holders