A company issued $85 million of 11.5% bonds dated January 1. Now lets say the market yield for bonds of maturity issued by a similar company in terms of riskiness is 12.25%. Now, how can a company sell debt paying only 11.5% when there is a market for debt paying 12.25%?
How can a company sell debt paying only 11.5% when there is a market for debt paying 12.25%?
August 8th, 2017 admin