Pask Company has issued a coupon bond in 2015 at a coupon rate 3.25% paid annually. Bond
Question:
Pask Company has issued a coupon bond in 2015 at a coupon rate 3.25% paid annually.
Bond code : PLAST 3,25-2024
Issue date: 01/01/2015 Maturity: 31/12/2024
Coupon rate: 3.25%
Par Value: €5000
Number of bonds issued: 100 000
Coupon date: 31/12 each year
In 31st December 2019. You can read the following quotation for this bond 31/12/2019: 104%
Questions:
1. Explain two objectives of businesses when they issue bonds
2. What are the main differences for the company between a debt issue in bonds market and a bank Loan?
3. At its issue, the company has offered a discount of 0,75% of Par value. How much the company has raised to finance its projects.
4. How much interest the company will pay to its bondholders per year
5. Draw the reimbursement table for the bond (for all bonds) from issue to maturity
Expert Answer:
Two objectives of businesses when they issue bonds are To raise funds for their operations or specif... View the full answer
