, and it sells at a yield to maturity of 9.25 percent. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value?
2007-03-11 11:21:14 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
Provided the new bonds have the same maturity and credit rating as the old bonds, they would issue them at 9.25 percent
2007-03-11 12:15:46 · answer #1 · answered by BosCFA 5 · 1⤊ 0⤋
a) so we've inputs FV=1000 (destiny par fee) n=sixteen (8 years left *2 pmts/3 hundred and sixty 5 days) i=3 (6%/2, semiannual fee) PMT=50 ($one hundred coupon/2 cases a 300 and sixty 5 days) PV= what we are looking for for, on the instant's fee fixing for PV you get $1251.22 b) the fee might start to say no in the direction of par fee, $1000
2016-11-24 21:05:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋