Question: Question 4 25 Marks PARTA 10 Marks Given that the company will require external financing based on the 2022 pro forma statements, the Finance Manager

Question 4 25 Marks PARTA 10 Marks Given that the company

Question 4 25 Marks PARTA 10 Marks Given that the company will require external financing based on the 2022 pro forma statements, the Finance Manager making a proposal to the Board of Directors to issue additional debt in the form of a $1,000,000 10-year bond, with an annual coupon rate of 8%, and quarterly interest payments. Required: Given current market conditions and the company's credit ratings, if the Finance Manager anticipates that the bond will close at a yield to maturity of 10%, how much would an investor be willing to pay for $1,000 face value of this bond at issue? (10 Marks)

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