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ID: 2807462 • Letter: #
Question
.lg-B' |||TT Normal! THo Spaci Heading 1 Heading Sty Paragraph Bond Market Summary Company Andrews $8,837.000 $7,072.000 $14,722.000 $35,104.000 11.8% 12.3% 12.2% 12.4% 11.252023 11.952024 11.452027 11.5S202 Baldwin $8.607.404 $5.756,951 $15,689,911 $17,785.485 $33.589.837 20.010.450 12.3% 13.2% 13.2% 13.8% 140% 11.252023 12.452024 93.85 13.0S2027 13.7S2028 13.852029 97.55 97.93 Chester 94 33 $2.425.572 $5.785,949 $1.278.536 15.539.938 $8,937.818 11 2S2028 12.052027 11.9% 98.43 100 55 12.5% Digby 37,481 711 $14.885.811 $7,937 853 30 474.381 $14.417.355 30.930.000 11-3S2023 12 552024 133% 93 38 13 452027 13-952028 14 0% Assuming no brokerage tees calculate the amount of cash needed to retire Baldwin's 12 4S2024 bond earyExplanation / Answer
Assuming no brokerage fees calculate the amount of cash needed to retire Baldwin’s 12.4S2014 bond early
The face value of the Baldwin’s 12.4S2014 bond is $5,756,951
The yield is 13.2%
Close$ is 93.85
The amount of cash needed to retire Baldwin’s 12.4S2014 bond early = Baldwin’s 12.4S2014 bond’s market value
= Face value * Closing
=$5,756,951 *93.85%
= $5,402,898.51
Therefore the amount of cash needed to retire Baldwin’s 12.4S2014 bond early is $5,402,898.51
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