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Company A needs to raise $500,000 capital for a new project. It will issue bonds to meet the capital requirement. Each bond contact has a
Company A needs to raise $500,000 capital for a new project. It will issue bonds to meet the capital requirement. Each bond contact has a face value of $1,000. Time to maturity is 10 years. Coupon interest rate is 5% per year. Coupons are paid semiannually. Yield to maturity is 4% per year. What is the number of bond contracts the company must sell to raise $500,000?
Multiple Choice -
1000
- 438
- 462
- 578
Company A needs to raise $500,000 capital for a new project. It will issue bonds to meet the capital requirement. Each bond contact has a face value of $1,000. Time to maturity is 10 years. Coupon interest rate is 5% per year. Coupons are paid semiannually. Yield to maturity is 4% per year. What is the number of bond contracts the company must sell to raise $500,000?
Multiple Choice
1000
- 438
- 462
- 578
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