Reinegar corporations has just issued a 25 year par bond


Reinegar Corporation's has just issued a 25 year par bond with a 10% semi-annual coupon. The company's bankers assure Rienegar management that it can raise $3,000,000 by issuing 25-year Original Issue Discount (OID) bonds bearing a 6.25% semiannual coupon. What will be the par value of the OID issue?

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Finance Basics: Reinegar corporations has just issued a 25 year par bond
Reference No:- TGS0613454

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