ROFL Limited has asked you to calculate the debt component to help in its calculation of its weighted average cost of capital (WACC). ROFL has 2,000 Corporate Bonds outstanding with a face value of $49,000 each. The coupon rate is 4% pa. compounding semi-annually. The bonds mature in 12 years and currently ROFL bonds are trading in the market at a yield of 7%p a. If a coupon payment was paid today what is the total market value of ROFLS issued bonds? Provide your answer to the nearest dollar.

ROFL Limited has asked you to calculate the debt component to help in its calculation of its weighted average cost of capital (WACC). ROFL has 2,000 Corporate Bonds outstanding with a face value of $49,000 each. The coupon rate is 4% pa. compounding semi-annually. The bonds mature in 12 years and currently ROFL bonds are trading in the market at a yield of 7%p a. If a coupon payment was paid today what is the total market value of ROFLS issued bonds? Provide your answer to the nearest dollar.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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