Question: Please show me how to do it without Excel (using a finance calculator is fine) The MillerCorp would like to acquire its competitor, the ModiglianiCorp.
The MillerCorp would like to acquire its competitor, the ModiglianiCorp. To pay for the acquisition expenses, it is intending to issue bonds that pay semiannual coupon payments. These corporate bonds would have a coupon rate of 11 percent and their YTM would be 9 percent. The bonds would have 15 years left until their maturity Interestingly, the ModiglianiCorp has the same plan. It wants to take a loan to acquire its competitor, the MillerCorp. by issuing corporate bonds. In fact, it already recently sold bonds for this purpose. Like the MillerCorp's bonds, its bonds pay coupons twice a year, have a 9 percent coupon rate, have a YTM of 11 percent, and they mature 15 years from today How much money can each company borrow by selling each of its bonds? Both corporations' bonds have a $1,000 par value. In addition, if future bond rates remain unchanged, what will be the prices for both companies' bonds 1 years from now? What about 5 years, 10 years. 14 years, and 15 years from now? (Do not round your intermediate calculations. Round your final answers to 2 decimal places, e.g., 32.16.) Miller Corporation Bond Modigliani Company Bond Price today 1 year 5 years 10 years 14 years 15 years
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