How much interest expenses did ferris save

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Reference no: EM131021463

In the practice rounds Ferris sold 400(000) units of it High End production capacity, 600(000) units of its Traditional production capacity, and 400(000) units of its Low End capacity generating $15,220(000) in positive cash flow. They used approximately $15,211(000) to retire (early payoff) the following bonds: $6,950(00) with an 11.0 % coupon and $8,050 with a 12.5% coupon. Ignoring the transaction costs, how much interest expenses did Ferris save in Round 1 by retiring those bonds (rounded to nearest $000)?___

Reference no: EM131021463

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