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    Average Life of Issue

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    A long-term debt issue in the amount of $200 million calls for mandatory redemption payments of $30 million each at the end of years 7, 8, and 9 and repayment of the remaining balance (called the balloon) at the end of year 10.

    Calculate the issue's average life.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:19 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/average-life-issue-273261

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    A long-term debt issue in the amount of $200 million calls for mandatory redemption payments of $30 million ...

    Solution Summary

    Calculates the Average Life of a long-term debt issue.

    $2.19

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