In the real world, the Predators chose to complete the above renovation using their net income from the year before (i.e., they used retained earnings). What if, however, they had instead issued a bond to pay for the arena renovations? Assuming the renovations still would have cost $10 million, a par value of $1,000, a yield of 7%, and a coupon value of 3.5%, how much would it have cost to issues bonds? Calculate the yearly debt service as well as the total cost of the bond once it reaches maturity in 10 years. (Please do in excel)
