Question: I need help in understanding how much Ivanhoe will pay Ivanhoe, Inc., has a bond issue maturing in seven years that is paying a coupon

I need help in understanding how much Ivanhoe will pay

Ivanhoe, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 10.0 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 8.5 percent, how much will Ivanhoe pay to buy back its current outstanding bonds?

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