Calculate what percentage of the coupon rate the company

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Reference no: EM133264959

A growing company intends to increase its capital by Rp10 billion through the issuance of bonds. The company has never entered the capital market before, so this plan is its debut. Bonds to be issued have a term of 5 years with coupons paid annually. It is known that currently the yield with the same tenor for bonds issued by a company with the same asset size as this company is 7% pa, while the yield on bonds issued by a company with a credit rating that is close to this company's condition is 8% pa.

Question : Calculate what percentage of the coupon rate the company must provide in order to get a premium of Rp. 50 million

Reference no: EM133264959

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