In: Finance
Bond price: Nanotech Ltd has a bond issue maturing in seven years and paying a coupon rate of 11.39 percent (semiannual payments). The company wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 10.73 percent, Nanotech will pay $_______________ to buy back its current outstanding bonds?
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
As nothing was mentioned excel is used.