At what price should logos corporation sell the bonds


Question: The LOGOS Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 9%, compounded annually. At what price should the LOGOS corporation sell these bonds.

Solution Preview :

Prepared by a verified Expert
Finance Basics: At what price should logos corporation sell the bonds
Reference No:- TGS01840060

Now Priced at $25 (50% Discount)

Recommended (98%)

Rated (4.3/5)