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Virgin Australia has suffered massive losses with the grounding of its planes due to the COVID-19 pandemic. It is planning on raising $10,000,000 in new
Virgin Australia has suffered massive losses with the grounding of its planes due to the COVID-19 pandemic. It is planning on raising $10,000,000 in new debt capital through the issue of 10% p.a. quarterly coupon bonds with a face value of $1,000. These bonds will mature in six years. If the market yield is 12% p.a. compounded semi-annually. Given the market conditions, the bonds will need to be issued at a 7% discount, how many bonds will Virgin Australia need to issue? Your response must be entered as a numerical value with O decimal places
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