Question: How much will Javert save on interest payments with this re-finance? You can assume that Javert will issue debt to cover the full price of

How much will Javert save on interest payments with this re-finance? You can assume that Javert will issue debt to cover the full price of repurchasing the old debt from part A.

Many companies look to re-finance their outstanding debt when interest rates fall significant. w Toy Co a nas 5 coupon. The debt has an average maturity o 10.00 years. The firm can refinance at an annual rate of 525 That s nvestor maturity. million n out nding that pay an 8.75% EER want S %, o ay or bonds smi ar risk and How much will Javert Toy company pay to buy back its cumrent outstanding bonds?(answer in terms of millions, so 1,000,000 would be 1.00)

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