What is the amount of the first interest payment

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Reference no: EM132068709

Amount issued $400 million Offered Issued at a price of 101.50% plus accrued interest (proceeds to company 101.300%) through First Boston Corporation. Interest 9.25% per annum, payable February 15 and August 15. Suppose the debenture was issued on September 1, 1992, at 101.50%. How much would you have to pay to buy one bond delivered on September 15? Don’t forget to include accrued interest. What is the amount of the first interest payment?

Reference no: EM132068709

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