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smwws
Apr 16, 2012, 01:55 PM
(1) a publicly placed 50 million bond issues. issuance cost are 1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20 year life. (2) a 50 million private placement with a large pension fund. issusnace cost are 500,000.00, the bond has a 9.25% annaul coupon, and the bond has a 20 year life. what alternative has the lower cost (annual percentage yield)?
smwws
Apr 16, 2012, 01:56 PM
(1) a publicly placed 50 million bond issues. issuance cost are 1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20 year life. (2) a 50 million private placement with a large pension fund. issusnace cost are 500,000.00, the bond has a 9.25% annaul coupon, and the bond has a 20 year life. what alternative has the lower cost (annual percentage yield)?