Semi-annual coupon bonds and lessee capital lease

Reference no: EM1330811

1. Firm Alpha issues one million face value nice percent semi-annual coupon bonds at a price to yield eight percent compound semiannually. Firm Bravo issues one million face value, seven percent semi-annual coupon bonds at a price to yield eight percent compound semi-annually. Both bond issues mature in twenty years. Will these firms receive the same the same initial issue price for these bonds?

2. How is a lessee's capital lease similar to, and different from, purchasing the equipment using the proceeds of a loan repayable in installments?

Reference no: EM1330811

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