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A certain insurance company wants to raise $31 million in order to build a new headquarters. The company will fund this by issuing 10-year bonds
A certain insurance company wants to raise $31 million in order to build a new headquarters. The company will fund this by issuing 10-year bonds with a face value of $1,000 and a coupon rate of 6.5%, paid semiannually. The table below shows the yield to maturity for similar 10-year corporate bonds of different ratings. Security AAA Corporate AA Corporate A Corporate BBB Corporate BB Corporate Yield (%) 6.20% 6.40% 6.70% 7.00% 7.50% How many more bonds would the insurance company have to sell to raise this money if their bonds received an A rating rather than an AA rating? (Round your answer to the nearest integer.) bonds
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