Question
Suppose a firm wants to raise $12.7 million by issuing bonds. It plans to issue a bond with the following characteristics: Coupon rate: 6% APR
Suppose a firm wants to raise $12.7 million by issuing bonds. It plans to issue a bond with the following characteristics:
- Coupon rate: 6% APR
- Yield to maturity: 7.6% APR
- Coupons paid out semi-annually
- Matures 20 years away from today
- Face Value = $1,000
How many bonds does the firm need to issue? Round to 2nd decimal point.
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
