Last year, Denison Corporation raised $100 million through a new bond issuance. The bonds have a3.2% coupon, a term of 6 years, and were issued at par.The bonds now trade at a YTM of 3.5%How much is Denison's annual interest expense?

Amount of bonds = $100 Million Coupon rate = 3.2% Period 6 years YTM = 3.5%

Answered: Last year, Denison Corporation raised…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Last year, Denison Corporation raised $100 million through a new bond issuance. The bonds have a 3.2% coupon, a term of 6 years, and were issued at par. The bonds now trade at a YTM of 3.5% How much is Denison's annual interest expense?