In 1995 Coca Cola Enterprises needed to borrow about a quarter of a billion dollars for 25 years. It did so by selling debt instrument each of which simply promised to pay the holder $1,000 at the end of 25 years. The market interest rate at the time was 8.53%. How much would you have been prepared to pay for one of the company's debt instruement?
In 1995 Coca Cola Enterprises needed to borrow about a quarter of a billion dollars for 25 years. It did so by selling debt instrument each of which simply promised to pay the holder $1,000 at the end of 25 years. The market interest rate at the time was 8.53%. How much would you have been prepared to pay for one of the company's debt instruement?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 10P: The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new...
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In 1995 Coca Cola Enterprises needed to borrow about a quarter of a billion dollars for 25 years. It did so by selling debt instrument each of which simply promised to pay the holder $1,000 at the end of 25 years. The market interest rate at the time was 8.53%. How much would you have been prepared to pay for one of the company's debt instruement?
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