Question

Filkins Farm Equipment needs to raise$4.5million for expansion, and it expects that five-year zero coupon bonds can be sold at a price of $567.44 for each $1,000 bond.
a. How many $1,000 par value, zero coupon bonds would Filkins have to sell to raise the needed $4.5 million?
b. What will be the burden of this bond issue on the future cash flows generated by Filkins? What will be the annual debt service costs?



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  • CreatedNovember 24, 2014
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