Nanotech pay to buy back its current outstanding bonds

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Reference no: EM131182549

Nanotech, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 8.5 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 7.0 percent, how much will Nanotech pay to buy back its current outstanding bonds? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25.)

Reference no: EM131182549

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