Krypton inc wants to raise 3 million by issuing 10-year


Krypton Inc. wants to raise $3 million by issuing 10-year zero coupon bonds with a face value of $1,000. Their investment banker informs them that investors would use a 9.25% percent discount rate on such bonds. At what price would these bonds sell in the market place assuming semi-annual compounding? How many bonds would the firm have to issue to raise $3 million ?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Krypton inc wants to raise 3 million by issuing 10-year
Reference No:- TGS01533755

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)