Question: Plaese i have only 20 mintis left . can anybody solve it asasp thank you G 7 Transistor Group issued 20-year bonds 8 years ago
G 7 Transistor Group issued 20-year bonds 8 years ago at par, when the yold-to-mal 10.0 percent. Since then, the yield-to-maturity has declined to 9.0 and the compa refunding the $8 million outstanding. They would replace it with an issue of equal of years remaining of the original issue. The company would have to pay a call premium of 6.0 percent on the old issue a on the new $8 million issue is $300,000. The company is in a 40.0 percent tax be be an overlap period of 1 month. Treasury Bills currently yield 3.0 percent per yer fu 9 Required: Complete the following table by entering the present value for each the relevant answering the question in the last row. Enter the discount rate with two decimal places. (eg. 12.34%) Round all cash flow numbers to zero decimal places. Enter cash outflows as negative numbers. Enter "Net numbers for each cash flow (e.g enter underwriting costs net of tax) 5.61% -288,000 Discount rate used: Call premium Interest savings
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