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a company wants to raise 30 million dollars to build a new headquarter. It will fund this by issuing a 10-year bond with a face
a company wants to raise 30 million dollars to build a new headquarter. It will fund this by issuing a 10-year bond with a face value of $1,000 and a coupon rate of 6.3% paid semiannually. the table below shows the yield to maturity for similar 10-year corporate bonds of different ratings. Which of the following is closest to how many more bonds the company would have to sell to raise this money if their bonds received a BBB rating rather than an A rating?
Table: AAA CORP: 62%
AA CORP: 6.4%
A CORP: 6.7%
BBB CORP: 7.0%
BB CORP: 7.5%
A. 937
B. 1093
C. 680
D.781
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