[kabir]

I got same. I add back depreciation

[kabir]

Am thinking of taking F5 and P4 by June. Will be attempting f9 this March. Is F5 & P4 good combination?

[kabir]

@afuyegallas said:
The premium was relevant! There was a clause in the question that the bondholders would only allow them redeem the bonds before maturity if they can pay a premium of 5% to the market value.

$11,200 – the issue costs gave us the net amount remaining to use for the redemption.

The next step was to calculate the MV of the loan by multiplying the nominal value by 104/100. Then you must add the premium.

The next step is to deduce the nominal amount of the bonds redeemed. And this is calculated by subtracting the net proceeds of the issue from the MV(with the premium) and multiplying the result by 100/104.

I got that 9,000,000 was the nominal value of the bond that was redeemed, leaving 21,000,000.

I thought it should be 105/100? May be am wrong

[Author]

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