“The Aleander Company plans to issue $10,000,000 of 20-year bonds next December. The company’s current cost of debt is 9 percent.
“The Aleander Company plans to issue $10,000,000 of 20-year bonds next December. The company’s current cost of debt is 9 percent. However, the firm’s financial manager is concerned that interest rates will increase in coming months, and has decided to take a short position in U. S. government T-bond futures. The following settle data are available for T-bond futures. Delivery Month Settle (1) (5) Dec […]