ROFL Limited has asked you to calculate the debt component to help in its calculation of its weighted average cost of capital (WACC). ROFL has 3,000 Corporate Bonds outstanding with a face value of $30,000 each. The coupon rate is 5% p.a. compounding semi-annually. The bonds mature in 15 years and currently ROFL bonds are trading in the market at a yield of 9%p.a. If a coupon payment was paid today what is the total market value of ROFL’s issued bonds? Provide your answer to the nearest dollar.

Answer rating: 100% (QA)

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