Krabby Patty Inc. is taking its regional chain national. To do this, it will need to raise
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Krabby Patty Inc. is taking its regional chain national. To do this, it will need to raise money.
On February 1st, 2021, Krabby Patty Inc. issued 30-year corporate bonds. Assuming the yield-curve that day showed the below rates and that Krabby's Bond rating meant it had to pay 8% to attract investors. How much did Krabby Patty Inc. pay (combined) for Default and Liquidity premiums?
5 yr | 0.44 % |
7 yr | 0.81 % |
10 yr | 1.12 % |
20 yr | 1.61 % |
30 yr | 1.8 % |
State your answer as a percentage to two decimal places, do not enter the % symbol
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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