Develop and present a valuation model for corporate debt with a
face value of $100 million...
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Finance
Develop and present a valuation model for corporate debt with aface value of $100 million dollars. The model should usehypothetical assumptions for the coupon rate and othercharacteristics as well as a hypothetical market interest rate. Youmust also select a maturity for the bonds and the frequency of thecoupon payments. The market rate should be justifiable/reasonablegiven current market conditions. Explain why the model will beimportant for the issuance process that is being considered.
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Face value 100 million Assumptions are as below Coupon rate 5 Coupon frequency semiannual Maturity 15 years Rating AAA Yield on AAA corporate bonds Moodys is 331 The current market value of the bond issue can be calculated as the present
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