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Calculate the cost of new debt: Bond 1: issued 5 years ago Coupon = 5% Par Value $660,000,000.00 Currently Yeilds: 6 Percent Trades @: 105% of Par...
Calculate the cost of new debt:
Bond 1: issued 5 years ago
Coupon = 5%
Par Value $660,000,000.00
Currently Yeilds: 6 Percent
Trades @: 105% of Par
Bond 2: Issued 3 years ago
Coupon = 6%
Par Value $470,000,000.00
Currently Yeilds: 5 Percent
Trades @: 95% of Par