Andrews wants to retire the following bond early: Series - 10.4S2030 Face - $4,695,774 Yield -...
Andrews wants to retire the following bond early: Series - 10.4S2030 Face - $4,695,774 Yield - 12.7% Close - $81.95 Assuming no brokerage fees, calculate the amount of cash needed to retire the bond. $4,695,774 $847,620 $3,848,154
Homework Answers
| Answer: $3,848,154 | |
| Calculation and explanation: | |
| Cash needed = 4695774*81.95/100 = | $ 38,48,187 |
Marginal difference between solution and option is due to difference in approximation.
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Andrews wants to retire the following bond early: Series -
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