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Corporation recently issued 10-year bonds at a price of 1,000. These bonds pay $50 in interest each six months. Their price has remained stable since
Corporation recently issued 10-year bonds at a price of 1,000. These bonds pay $50 in interest each six months. Their price has remained stable since they were issued, still sell for $1,000 today. Due to additional financing needs, the firm wishes to issue new bonds that would have a maturity of 10 years, a par value of 1,000, and pay $30 in interest every six months. If both bonds have the same yield (required rate of return)how many new bonds must issue to raise 3, 000,000 cash?
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