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Boeing (BA) needs $20 billion in new debt. The firm plans to issue bonds which pay $1,000 at maturity. The bonds will carry a 7.5%

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Boeing (BA) needs $20 billion in new debt. The firm plans to issue bonds which pay $1,000 at maturity. The bonds will carry a 7.5% coupon. If the yield on the bonds is 4%, how many bonds will Boeing need to sell? The bonds mature in 40 years and pay a coupon on a semiannual basis. (Note: round all answers to two (2) decimal places and use separating commas.) BONUS Q Question 36 (3 points) Assume Kaliope Corp. recently paid a dividend of $5. The firm is expecting a period of high growth and therefore plans to grow dividends at 10% in year one, 20% in year two, and 10% in year three. After year three, the firm plans to reduce the dividend growth to a more sustainable 5% rate. If the required rate of return is 10%, what is the terminal or horizon value for this stock? O a) $152.46 Ob) Cannot be determined Oc) $120.14 O d) $130.56 Oe) $7.26

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