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    Apr 16, 2012, 01:55 PM
    Finding the apy
    (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's Avatar
    smwws Posts: 2, Reputation: 1
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    #2

    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)?
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