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Teva Inc. recently issued 10-year bonds at a price of $1,000. These bonds pay $60 in interest each six months. Their price has remained stable
Teva Inc. recently issued 10-year bonds at a price of $1,000. These bonds pay $60 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, Teva wishes to issue new bonds that would have a maturity of 10 years, a face value of $1,000, and pay $40 in interest every six months. If both bonds have the same yield, how many new bonds must Teva issue to raise $4,000,000 cash? 03,478 0 0 ) 5,418 O4,275 O2,596
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