It is 2030 and the yields on corporate bonds are as follows: Tau Corp wishes to raise

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It is 2030 and the yields on corporate bonds are as follows:

Tau Corp wishes to raise $10 million by an issue of 9% 10-year bonds. What will be the likely issue price (as a percent of face value) if Tau is rated

(a) Aaa,

(b) A,

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Principles of Corporate Finance

ISBN: 978-1260013900

13th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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Question Posted: Sep 27, 2019 12:44 PM

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It is 2030 and the yields on corporate bonds are as follows: Tau Corp wishes to raise

Question:

Ba Aaa 12% 10% 8%

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a Aaa bond pricing as a percent of fa...View the full answer

Principles of Corporate Finance

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