What amount will SBT Ltd raise on the initial issue

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Question - SBT Ltd has issued $100 million of debentures with a fixed interest coupon equal to current interest rates of 7.70% per annum, coupons paid half-yearly and a maturity of 10 years. What amount will SBT Ltd raise on the initial issue of the debentures?

After 3 years, yields on identical types of securities have risen to 8.75% per annum. Existing debentures now have 7 years to maturity. What is the price of the existing debentures in the secondary market?

Reference no: EM132487304

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What amount will SBT Ltd raise on the initial issue : SBT Ltd has issued $100 million of debentures with a fixed interest coupon. What amount will SBT Ltd raise on the initial issue of the debentures
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