Question: Use this table to answer the following questions: Amount issued $ 3 2 0 million Offered Issued at a price of 9 9 . 5

Use this table to answer the following questions:
Amount issued $ 320 million
Offered Issued at a price of 99.500% plus accrued interest (proceeds to company 98.717%) through Citi and JPMorgan
Interest 8.05% per annum payable June 15 and December 15.
Maturity June 15,2041
Denomination, face value, or principal $ 1,000
Callable Remaining payments discounted at the treasury rate +30 basis points
AMAT decides to call the bond one year before it is due to expire. The interest rate on one-year Treasury bonds is 4.05%. What price per bond must AMAT pay to call the bonds?
Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2 decimal places.
If the interest rate on Treasury bonds is 13.05%. What price per bond must AMAT pay to call its bonds? (Hint: AMAT will pay the greater value between the par value and the PV of remaining payments)
Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2 decimal places.Use this table to answer the following questions:
a. AMAT decides to call the bond one year before it is due to expire. The interest rate on one-year Treasury bonds is 4.05%. What
price per bond must AMAT pay to call the bonds?
Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded
to 2 decimal places.
b. If the interest rate on Treasury bonds is 13.05%. What price per bond must AMAT pay to call its bonds? (Hint: AMAT will pay the
greater value between the par value and the PV of remaining payments)
Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded
to 2 decimal places.
a. Price payable by AMAT
 Use this table to answer the following questions: Amount issued $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!