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ISIA Corporation recently issued 10-year bonds at its par value $1,000 per share. These bonds pay $60 coupons every six months. Their price has remained
ISIA Corporation recently issued 10-year bonds at its par value $1,000 per share. These bonds pay $60 coupons every six months. Their price has remained stable since they were issued, i.e., they still sell for $1,000 share. 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 it will pay $30 coupons every six months. If both bonds have the same yield to maturity, how many shares of new bonds must ISIA issue today to raise $2,150,000 cash today?
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