Telex, Inc. needs to raise $20 million by issuing bonds. It plans to issue a $1000 par value bond that makes semiannual coupon payments and has 10 years to maturity. The bond has a coupon rate of 5.00%. The yield to maturity on the bond is expected to be 6.90%. How many bonds must be issued ( rounded up to the nearest whole number ) ? 1 ) 23.139 2 ) None of the answers in this list is within 20 bonds of the correct answer . 3) 23,623 4) 23,422 5) 23,848 6) 24,015
Telex, Inc. needs to raise $20 million by issuing bonds. It plans to issue a $1000 par value bond that makes semiannual coupon payments and has 10 years to maturity. The bond has a coupon rate of 5.00%. The yield to maturity on the bond is expected to be 6.90%. How many bonds must be issued ( rounded up to the nearest whole number ) ? 1 ) 23.139 2 ) None of the answers in this list is within 20 bonds of the correct answer . 3) 23,623 4) 23,422 5) 23,848 6) 24,015
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Telex, Inc. needs to raise $20 million by issuing bonds. It plans to issue a $1000 par value bond that makes semiannual coupon payments and has 10 years to maturity. The bond has a coupon rate of 5.00%. The yield to maturity on the bond is expected to be 6.90%. How many bonds must be issued ( rounded up to the nearest whole number ) ? 1 ) 23.139 2 ) None of the answers in this list is within 20 bonds of the correct answer . 3) 23,623 4) 23,422 5) 23,848 6) 24,015
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