Current bond issue data Par value$45,000,000 OLD Couponrate6.2500% OLD Original maturity40 Remaining maturity25 OLD Original flotation costs$4,900,000
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Question:
Current bond issue data
Par value$45,000,000
OLD Couponrate6.2500%
OLD Original maturity40
Remaining maturity25
OLD Original flotation costs$4,900,000
Call premium5.0000%
Tax rate40%
Refunding data
NEW Coupon rate4.0000%
NEW Maturity25
NEW Flotation costs $3,600,000
Using this information how do you get the INITIAL CASH OUTLAY
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