Problem
Antoni's company requires funds of around Rp. 1,000,000,000, - to expand the center. Management has decided to issue Bonds Payable with a nominal value of Rp 1,000,000 per share. Interest is set at 15% per annum paid once a year at the end of each year. Liabilities are designed to be long-term in a period of 7 years. If the current market interest rate (interest) is 12% per year and is constant for 7 years, determine how much funds will be obtained from the planned launch of the bond debt! (assume all sold at the time of initial offering)
The proposal that has been decided is 11% interest per year. Why do you think the proposal was not approved, and finally decided? The interest offered is 15% per year.
There is actually one suggestion that the nominal interest on bonds is not 15% per year, but 5% per quarter. What do you think about the proposal?