1) Exactly five years ago, WSGD Holdings issued 20-year bonds with a $1,000 face value. These...

1) Exactly five years ago, WSGD Holdings issued 20-year bonds with a $1,000 face value. These bonds pay $55 in coupon payment every six months. The bonds currently sell for $950. Due to additional financing needs, the firm has decided to issue new bonds that will have a maturity of 20 years, a par value of $1,000, and pay 4% coupon every six months. If both bonds have the same yield, how many new bonds must WSGD Holdings issue to raise $10,000,000 cash?

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jeff jeffy answered 1 year ago

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