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The company XYZ is contemplating a new bond issue. They plan to issue 20 000 bonds with 10 000 euros par value and 6 years

The company XYZ is contemplating a new bond issue. They plan to issue 20 000 bonds with 10 000 euros par value and 6 years to maturity. The coupon rate is going to be 3% paid out semi-annually. Current ongoing market interest rate for similar bonds is 5%.

Find the amount of funds the company is going to raise by issuing bonds.

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