Capital

User Generated

qxny12

Business Finance

Question Description

The company plans to issue $10 million dollars of $1,000 face value bonds. The bonds pay interest semi-annually at a rate of 8.50% APR and will mature in 10 years. If the current required rate of return on similar debt is 7.75%, how much capital will the company raise in this transaction?

PLEASE SHOW THE WORK
a. $9,501,500.
b. $10,515,300.
c. $9,510,700.
d. $33,883,300.
e. $10,509,000

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Explanation & Answer

vxver (128)
University of Maryland

Anonymous
Awesome! Perfect study aid.

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