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Company X wants to raise $35 million in order to develop a new vaccine against the Flu. The company will fund this by issuing a
Company X wants to raise $35 million in order to develop a new vaccine against the Flu. The company will fund this by issuing a 10-year bond, with $1,000 face value, 6.00% coupon rate, quarterly coupon payments, and yield to maturity of 5.40% (APR). How many bonds does Company X have to sell to raise this money? (Round up to the nearest integer). 33,457 bonds 32,044 bonds 334,568 bonds 33,479 bonds Suppose a 10 -year bond with $100 face value, 6.50% coupon rate and semiannual coupons is currently trading at a price of $105.50. All else constant, if the yield to maturity of the bond suddenly changes to 7.00% APR, what will happen to this bond's price? it will decrease by $8.758 it will decrease by $9.012 it will stay the same it will decrease by $9.053
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