which bond issues poses the least risk
A corporation would like to recapitalize it’s capital structure by issuing a bond. Bonds from this corporation had been rated as BBB+. Which of the following bond issues poses the least risk to the issuer corporation?
Bond | Currency | Issue Volume | Issue Price | Denomination | Coupon | Maturity Date |
A | USD | 750,000,000.00 | 99.98 | $1,000 | 3.8750% | 28/2/2027 |
B | USD | 500,000,000.00 | 99.41 | $1,000 | 3.1250% | 13/3/2025 |
C | USD | 1,500,000,000.00 | 99.59 | $1,000 | 5.5500% | 13/1/2026 |
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Calculating the Weighted Average Cost of
Debt
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number of bonds and then multiply by the price of the bond
(remember that bond prices are quoted in 100s, but are really
1000s).
If there is no bond price,...
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Hello,
I am doing a WACC project of Apple, Inc and trying to follow the
instruction below, but I do not think it is clear enough for me to
follow.
Calculating the Weighted Average Cost of
Debt
Find the market value of each bond issue. To do this find the
number of bonds and then multiply by the price of the bond
(remember that bond prices are quoted in 100s, but are really
1000s).
If there is no bond price,...
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