December 2011 Levante CO.

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November 28, 2016 at 5:03 pm #352207
raniakhan02
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sir if Levante looks towards option 2 where the coupon rate is higher, how is the examiner calculated an extra 1,500,000 to be needed if there is a higher coupon rate of 6% and 5%,

and how has he calculated the extra 67,398 for option 1

thanks alot
November 28, 2016 at 7:09 pm #352232
John Moffat
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1% extra on 1.5M $100 units is $1.5M

67,398 is the difference between the bonds that would need to be issued if there were to be a 4.3% discount (1,567,398), and the bonds that would need to be issued without the discount (1,500,000).
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