mishyshades
Jan 3, 2010, 10:48 AM
a company issues long term debt on 1/1/08. Debt has face value of $300k and annual stated interest rate of 10%. Debt matures 1/1/2013 assume debg agreement rquires company to make annual interest payment every Jan 1st. What is a timeline indicating the timing and magnitude of future cash outflows of this long term debt Assume the debt agreement requires the company to make semiannual interest payments every July 1 and January 1, setup the same time line as mentioned above what is the present value of both debt agreements assuming the effective rate of interest is equal to stated rate of interest