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Finance - First Interest Payment Calculation




Question;Refer to the following information:Amount issued $420 millionOffered Issued at a price of 102.00% plus accrued interest (proceeds to company 101.790%) through First Boston Corporation.Interest 9.75% per annum, payable February 15 and August 15.a. Suppose the debenture was issued on September 1, 1992, at 102.00%. How much would you have to pay to buy one bond delivered on September 15? Don?t forget to include accrued interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)Amount to be paid %b. What is the amount of the first interest payment? (Do not round intermediate calculations. Enter your answer in millions and final answer to 1 decimal place.)Amount of payment: $ million


Paper#48617 | Written in 18-Jul-2015

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