Quick question about bond pricing.
"Jaguar Land Rover Automotive announced on March 3, 2015, an issue of Senior notes (Bonds) worth US$500 million and due in 2020 at a coupon rate of 3.5 per cent per annum, interest payable semi-annually. The net proceeds of this issue were to be primarily applied to repurchase the company's outstanding Senior Notes worth $410 million, issued on May 19, 20122, and due on May 15, 2021. These outstanding Notes carried a coupon rate of interest of 8.125% payable two times a year."
I'm trying to find the cash flows associated the new bond of $500 million from 2015 to 2020. To find the CFs, using face value of $1000, the semi-annual payments are $17.5 two times a year. Is that right? Or to find the semi-annual payments, I need to multiply 1.75% * $500M = $8.75M.
Usually, with a given bond with $1000 face value, I would just do 1.75% * 1000 for 'n' periods and do (1.75% *1000) + $1000 for the last payment, but this $500M confuses me.
Submitted February 25, 2017 at 03:40PM by rainmen http://ift.tt/2lVHyLS
