Refer to the following information:
Amount issued $420 million
Offered Issued at a price of 102.00% plus accrued interest (proceeds to company 101.790%) through First Boston Corporation.
Interest 9.75% per annum, payable February 15 and August 15.
a. Suppose the debenture was issued on September 1, 1992, at 102.00%. How much would you have to pay to buy one bond delivered on September 15? Don’t forget to include accrued interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Amount to be paid %
b. What is the amount of the first interest payment? (Do not round intermediate calculations. Enter your answer in millions and final answer to 1 decimal place.)
Amount of payment: $ million
