jerdab
Mar 19, 2013, 01:05 PM
A company issued 50 000 bonds at 990 euros (face value is 1 000 euros) 2 years ago. The maturity is now 5 years and the bond will be repaid at par value. The coupon rate is 7%. The company's bank informed them that they coud borrow today at a lower rate, 6.5%. The tax rate is 33.33%.The market value of the loan is??