Use the Given Bond Table to Find the Requested Value

question 43

Multiple Choice

Use the given bond table to find the requested value for Solar Energy (SNG) bonds maturing in 2022.
-Last yield or yield to maturity

• A)3.438%
• B)5.05%
• C)45.5%
• D)4.55%

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Definitions:

Weighted Average Cost

Weighted average cost often refers to the weighted average cost of capital (WACC), a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Face Value

The nominal or dollar value printed on a security or currency.

Flotation Costs

Fees and other costs incurred by a company during the process of issuing new securities, including legal, underwriting, and registration expenses.