Professional Challenge

Robert Mondavi Company is using bonds to collect capital for its new developments. Robert Mondavi was issuing bonds many times in different quantities and every issue has different coupon rate, only some of them are callable as well as different issues have different maturities.
To demonstrate how bond refunding can works and how company can save money and improve its cash flow I used assumptions provided in our instructions and I also accepted that Robert Mondavi has only one bond issuance that has 10% call premium, 10% coupon rate and 20 years maturity.
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