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PLEASE SHOW WORK 10. JR Corporation recently issued 10-year bonds at a price of $1,000. These bonds pay $81 in interest each six months. Their
PLEASE SHOW WORK
10. JR Corporation recently issued 10-year bonds at a price of $1,000. These bonds pay $81 in interest each six months. Their price has remained stable since they were issued, i.e., they still sell for $1,000. Due to additional financing needs, the firm wishes to issue new bonds that would have a maturity of 14 years, a par value of $1,000, and pay $61 in interest every six months. If both bonds have the same yield, how many new bonds must JR issue to raise $2,000,000 cash?(round your answer) 1,497 2,000 3,558 2,561Step by Step Solution
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