do you think this process is reasonable and why/whynot? September 2019 $4,500,000 September 2020. $5,050,000
As an analyst for a big technology company. The company has decided that this is the time to retire some of its debt. The company has decided the best way to do this is if us government bonds are used to match the principle as well as the interest payments on the liabilities chosen. Set up a strategy to accomplish this showing your work and discussion your result. do you think this process is reasonable and why/whynot?
September 2019 $4,500,000
September 2020. $5,050,000
September 2021. $3,750,000
September 2022 $6,450,000
The Government debt
1.50% coupon due September 2019
1.75% coupon due September 2020
2.35% coupon due September 2020
2.6% coupon due September 2021
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