SONO Ltd. Four Years Ago, Raised $30 Million By Issuing 15-Year $1,000 Par Value Bonds That Carry
Question:
SONO Ltd. Four Years Ago, Raised $30 Million By Issuing 15-Year $1,000 Par Value Bonds That Carry 6.8% Coupon Rate, Payable Semiannually. SONO Ltd. Is Currently Announcing To Raise Another $20 Million By Issuing 15-Year Zero Coupon Bonds That Discount Semi-Annually. The Current YTM On These Bonds Is 9%. (A) Calculate The Number Of The 15-Year
on these bonds is 9%. (a) Calculate the number of the 15-year coupon bonds that SONO Ltd. issued to raise the $30 million four years ago. What will be the company's repayment be at the maturity date of the 15-year coupon bonds? Calculate the current bond prices of the 15-year coupon bonds and 15-year zero coupon bonds. (c) Calculate the number of the 15-year zero coupon bonds that SONO Ltd. currently issues to raise the $20 million. What will be the company's repayment be at the maturity date of the 15-year zero coupon bonds?
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty