Your firm would like to raise \\( \\mathrm{R} 580000 \\) by issuing bonds with the...

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image Your firm would like to raise \\( \\mathrm{R} 580000 \\) by issuing bonds with the following features: 13\\% 7 year bond with a similar risk profile to companies that have bonds that have yields of \14. Flotation costs are R 120 per bond. Assume par value of R1000. a.) What is the estimated price of each bond? \\( \\mathrm{R} \\) b.) What are the net proceeds for each bond? R c.) How many bonds should be issued to cover flotation costs and raise the R580 \\( 000 ? \\) bonds. d.) If the market is willing to pay R980 for this bond, calculate the yield to maturity of this bond issue based on the market? \ e.) How many bonds would the company need to issue using the market price of the bond to raise the \\( \\mathrm{R} 580000 \\) ? bonds. Your firm would like to raise \\( \\mathrm{R} 580000 \\) by issuing bonds with the following features: 13\\% 7 year bond with a similar risk profile to companies that have bonds that have yields of \14. Flotation costs are R 120 per bond. Assume par value of R1000. a.) What is the estimated price of each bond? \\( \\mathrm{R} \\) b.) What are the net proceeds for each bond? R c.) How many bonds should be issued to cover flotation costs and raise the R580 \\( 000 ? \\) bonds. d.) If the market is willing to pay R980 for this bond, calculate the yield to maturity of this bond issue based on the market? \ e.) How many bonds would the company need to issue using the market price of the bond to raise the \\( \\mathrm{R} 580000 \\) ? bonds

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