A tech company has decided that this is the time to retire some of its debt. The company has decided the best way to do this is if us government bonds are used to match the principle as well as the interest payments on the liabilities chosen. Set up a strategy to accomplish this. discuss the result. below is the schedule for the debt. do you think this process is reasonable and why/why? September 2019 $4,500,000 September 2020. $5,050,000 September 2021. $3,750,000 September 2022 $6,450,000 The Government debt that is similar is as follows. 1.50% coupon due September 2019 1.75% coupon due September 2020 2.35% coupon due September 2020 2.6% coupon due September 2021
A tech company has decided that this is the time to retire some of its debt. The company has decided the best way to do this is if us government bonds are used to match the principle as well as the interest payments on the liabilities chosen. Set up a strategy to accomplish this. discuss the result. below is the schedule for the debt. do you think this process is reasonable and why/why? September 2019 $4,500,000 September 2020. $5,050,000 September 2021. $3,750,000 September 2022 $6,450,000 The Government debt that is similar is as follows. 1.50% coupon due September 2019 1.75% coupon due September 2020 2.35% coupon due September 2020 2.6% coupon due September 2021
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 11C
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A tech company has decided that this is the time to retire some of its debt. The company has decided the best way to do this is if us government bonds are used to match the principle as well as the interest payments on the liabilities chosen. Set up a strategy to accomplish this. discuss the result. below is the schedule for the debt. do you think this process is reasonable and why/why?
September 2019 $4,500,000
September 2020. $5,050,000
September 2021. $3,750,000
September 2022 $6,450,000
The Government debt that is similar is as follows.
1.50% coupon due September 2019
1.75% coupon due September 2020
2.35% coupon due September 2020
2.6% coupon due September 2021
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