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Business, 06.07.2021 20:20 jdkrisdaimcc11

Guv-Mint Bales needs to raise $1,200,000,000 (1.2 Billion) in new debt to finance its survival. The debt will be priced at a yield to maturity of 6.48%. These will be 30 year bonds with a coupon rate set at 5% to be paid annually. The investment bankers are charging a flotation cost of 2.50%. Bonds will have a face value of $1,000 per bond. Compute the number of bonds to be issued and round to the second decimal place.

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Guv-Mint Bales needs to raise $1,200,000,000 (1.2 Billion) in new debt to finance its survival. The...
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