Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
3rd Edition
ISBN: 9780133507676
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 15, Problem 3P
Summary Introduction

Bond: A Bond is debt instrument which is used to raise money from an investor. An investor uses the bond to lend his money to a corporate organization or the government for a fixed period of time. The corporate and government should pay a fixed amount of interest to bondholders. It is a major source of finance raising for corporation and government. The terms and conditions of the bonds are described in the bond certificate indicating amounts and date of all payments to be made. The bond has maturity period in which final repayment of the bond is to be made. The bond makes two types of payment to the investors, first is principal amount of bond and second is interest amount. Corporate bonds, convertible bonds, zero coupon bonds, callable bonds, and term bonds are the example of various types of bond.

To determine: Net amount of funds

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What is WACC-Weighted average cost of capital; Author: Learn to invest;https://www.youtube.com/watch?v=0inqw9cCJnM;License: Standard YouTube License, CC-BY