Retire a portion of the issue by buying the securities

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Carla Vista, Inc, has a bond issue maturing in seven years that is paying a coupon rate of 10.0 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. It can refinance at 8.5 percent, how much will Carla Vista pay to buy back it's current outstanding bonds?

Reference no: EM132364523

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