Nanotech pay to buy back its current outstanding bonds

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Reference no: EM132004238

Nanotech, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 11.32 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 10.07 percent, how much will Nanotech pay to buy back its current outstanding bonds? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.)

Reference no: EM132004238

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