Assume the rate on the issuance of 100m of 100-year bonds


Assume the rate on the issuance of $100m of 100-year bonds is 7.5%; the annual debt service payment would be $7.505m. How high would the interest rate have to be on 30-year bonds for the annual debt service payment to be the same for both financings?

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Financial Management: Assume the rate on the issuance of 100m of 100-year bonds
Reference No:- TGS01396351

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