A company issued $30 million of face value bonds, with a coupon rate of 5% payable semi-annually. The maturity date on the bonds is in 15 years. The bonds were sold in the market and investors required a 5.5% yield to maturity. Given this information, how much was received by the company in its bond issue? Enter your answer using two decimal places and with a $ and appropriate comma separators. For example $1,234,567.89
A company issued $30 million of face value bonds, with a coupon rate of 5% payable semi-annually. The maturity date on the bonds is in 15 years. The bonds were sold in the market and investors required a 5.5% yield to maturity. Given this information, how much was received by the company in its bond issue? Enter your answer using two decimal places and with a $ and appropriate comma separators. For example $1,234,567.89
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A company issued $30 million of face value bonds,
with a coupon rate of 5% payable semi-annually.
The maturity date on the bonds is in 15 years. The
bonds were sold in the market and investors
required a 5.5% yield to maturity. Given this
information, how much was received by the
company in its bond issue?
Enter your answer using two decimal places and
with a $ and appropriate comma separators. For
example $1,234,567.89
Answer:
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