TSF had a decision to make regarding how to pay for that new equipment. They decided...

 

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TSF had a decision to make regarding how to pay for that new equipment. They decided to sell bonds for (face/maturity value) $3.000 instead of trying to sell more common stock. Their bonds have a maturity of 15 years. The coupon on the bonds was 5% When the TSF bonds were issued in 2017, you bought one. Then, four years later you decide to stock in Facebook, but you don't have enough cash in your savings account. To get the cash, you sell your TSF bond in the secondary market (note this is a fairly stupid thing to do, but what the heck). You find that similar bonds now are carrying a 3% coupon. If that's the case, what should the value of your TSF bond be now in 2021? You must show the formula and all work!. TSF had a decision to make regarding how to pay for that new equipment. They decided to sell bonds for (face/maturity value) $3.000 instead of trying to sell more common stock. Their bonds have a maturity of 15 years. The coupon on the bonds was 5% When the TSF bonds were issued in 2017, you bought one. Then, four years later you decide to stock in Facebook, but you don't have enough cash in your savings account. To get the cash, you sell your TSF bond in the secondary market (note this is a fairly stupid thing to do, but what the heck). You find that similar bonds now are carrying a 3% coupon. If that's the case, what should the value of your TSF bond be now in 2021? You must show the formula and all work!.

Answer rating: 100% (QA)

SOLUTION To calculate the value of the TSF bond in 2021 that was originally issued in 2017 TSF or... View the full answer