Could you please help me solve this problem. Thank-you.
Green Inc. has a bond issue maturing in seven years that is paying a coupon rate of 9.0 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 7.5 percent, how much will Green Inc. pay to buy back its current outstanding bonds?
(Round answer to 2 decimal places, e.g. 15.25.)
Green Inc. will pay?
Green Inc. will pay $1,080.55... View the full answer