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(Solved): JRJ Corporation Recently Issued 10-year Bonds At A Price Of $1,000. These Bonds Pay $60 In Interest ...
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JRJ Corporation 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 nee the firm wishes to issue new bonds that would have a maturity of 10 years, a par value of $1,000, and pay $40 in interest every six months. If both bonds have the same yield, how many new bonds must JRJ issue to raise $2,000,000 cash? 2.400 2.596 3,000 5,000 14.275
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