Costs-bond issues, Compute the cost of repricing the bond

Costs-bond issues

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Reference no: EM1338592

Bond issue is for $50M, carrying a 5.58% coupon and a 20-year maturity. It is recommended the price issues to yield 5.6%.

1. Calculate the cost of repricing the bond issue.

2. Provide the expected additional cost associated with the recommendation of pricing the issue to yield the more competitive return.

3. Provide the additional cost to the company.

Reference no: EM1338592

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