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Rio Tinto needs to raise $126 million to open a new mine. The CFO plans to sell 10-year bonds with a $1000 face value and
Rio Tinto needs to raise $126 million to open a new mine. The CFO plans to sell 10-year bonds with a $1000 face value and an 8% coupon rate (semiannual APR) to fund the project. Bonds of similar maturity and risk are priced by the market to yield a 6.6% semiannual APR. What total face value of bonds must be sold to raise the cash? Answer in millions, i.e. $55.6 million = enter 55.6.
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