The company MACEIO SA has placed bonds on the Brazucalandia stock market. Below is the detail of
Question:
The company MACEIO SA has placed bonds on the Brazucalandia stock market. Below is the detail of its current obligations with the public:
SERIES
CURRENT NOMINAL AMOUNT PLACED
RESET UNIT
OF THE BONUS
INTEREST RATE
COUPON
FINAL TERM
A
70.000.000
Dollars
5,4%
01-07-2032
B
150.000.000
Dollars
7,2%
01-03-2045
PERIODICITY
PLACEMENT
SERIES
PAY OF
INTERESTS
PAY OF
AMORTIZATION
IN BRAZUCALANDIA
ABROAD
A
BIMONTHLY
TO THE EXPIRATION
NATIONAL
B
BIMONTHLY
BIMONTHLY
NATIONAL
Payments are made on the 1st of the months of: January, March, May, July, September and November of each year. For valuation purposes, years are considered 360 days (with equal months).
Assume that: The Series A bonds were placed on January 1, 2015, with a market rate of 5.1%. For its part, the Series B bonds were placed on November 1, 2018, with a market rate of 7.5%.
Based on the information provided, answer the following questions:
a) Calculate the market value of the Series A bonds on the day they are placed on the market.
b) Calculate what the par value of the Series B bond would be, as of September 1, 2029.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill