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Determining Bond Prices, Interest Rates, and Financial Statement Effects Deere Company's 2018 10-K reports the following footnote relating to long-term debt for is equipment operationsoby, borrowing code 300 million 7.12.2011 ghlighted below Long term borrowings at October 28 consisted of the following in millions of dollars Notes and Debentures 2018 2017 Tue 2019 0 - dondue 2021105 2.00 1.000000 552030 200 50 100 BUENO 200 7.12 notes 2015 10 20 Other 1600 ASSO Arcentance outte dom Martinsideo D12 notes follows: Coup Free Maturity Yll Rating Calle The price te indest that notes in market pace of or ce a yeld of (C) How much cash would Deere have to pay to repurchase the 71250 notes at the quoted market price of 131,0397 (Assume no interests owed when Deere purchases the notes) Round your answer to two decimal places million 10 How would the repurchase affect Deere's current income The repurchase would result in a loss on reporchase of debentures, which would lower current pro tax income Cash and bonds payatile both decrease by the same amount. No gain or loss is recognized OThe repurchase only affects cash flow, not income Oncome is not affected because the ability has been reported at fair value since inception: As a result, the repurchase price is equal to the book value and no gan or loss is recognized (d) Assuming that the notes remain outstanding until their maturity at what market price will the notes sell on the due date in 2031 $0 million

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