Assume that WES would like to replace its non-current “lease liabilities” (in 2021) with a new issue of bonds. Assume that the issue will have a coupon rate of 5% with a 15 year maturity. Assume the bonds are semi-annual coupon bonds and each have a face value of $1,000 and the required rate of return for similar bonds in the market is 4.5%. What would be the issuing price of these bonds? How many bonds will WES have to issue in order to replace its non-current “lease liabilities”? 

Answer rating: 100% (QA)

Bond Price 105411 Number of Bonds 1987 Bonds Coupon 5 005 1000 50 Face Value 10... View the full answer