Question
Your company needs $30 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be
Your company needs $30 million and you want to issue 30-year bonds for this purpose. Assume
the required return on your bond issue will be 6%, and you want to issue 30-year semiannual coupon
bond with a coupon rate of 5%. The bond will have a par value of $1,000. How many of bonds
would you need to issue to raise the $30 million?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
