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Firm XYZ issued 3-year bonds that if they sold at Par would raise $10,000,000. The bonds had a Par Value of $1,000 and a coupon
Firm XYZ issued 3-year bonds that if they sold at Par would raise $10,000,000. The bonds had a Par Value of $1,000 and a coupon rate of 4 percent. If the market prices the bonds such that they carried a yield-to-maturity of 5 percent, how much did the firm actually raise with the new bond issue? Assume the coupons are paid annually
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