Matt is a CFO of a utility company. The company plans to make upgrades to its existing power grid network, converting many of its overhead lines to underground powerlines instead. To raise capital for this purpose, Matt has decided that the company would go to the bond market and issue bonds. He decided to raise $80 million in debt capital. The investment bank advising Matts company suggests that they issue bonds with a 30 years life, and the bonds would pay coupons semi-annually. Standards & Poors ratings on previous bonds issued by Matts utility company is BBB, and there is no reason to believe that the ratings would change on this new round of bonds issued.

The current yield-to-maturity of bonds with BBB rating and 30 years maturity is 5.392%. For this new series of bonds issued by Matts utility company, the face value of each bond is $10,000. There are NO put or call options embedded with this bond.

If Matt wanted the value of the bonds today (Present Value) to be equal to the Face value. What coupon payment in dollar term must the bond pay every period per each bond? Besides providing the answer, please also state clearly in your answer what is the PV, FV, N (number of periods), INT, you would be entering into Excel.

Remember that the bond pays coupon semiannually