Eggs and More Restaurants, Inc. plans to issue 20-year notes with a face value of $15,000,000 and a coupon rate of 5.5%. The market rate of interest is 4%. Interest payments will be made semi-annually.
A. Computer the market value of the bonds.
B. Assume the market rate remains at 4% after 5 years. How much cash will Eggs and More Restaurants, Inc. need to pay off the notes at this time?

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The Answer of Eggs and More Restaurants, Inc. plans to issue 20-year notes with a face value of $15,000,000 and a coupon rate of 5.5%. The market rate of interest is 4%. Interest payments will be made semi-annually.
A. Computer the market value of the bonds.
B. Assume the market rate remains at 4% after 5 years. How much cash will Eggs and More Restaurants, Inc. need to pay off the notes at this time?