Exactly four years ago aaa corporation issued 20-year bonds


Exactly four years ago, AAA Corporation issued 20-year bonds with a $1,000 face value. These bonds pay $65 in coupon payment every six months. The bonds currently sell for $1,020. Due to additional financing needs, the firm has decided to issue new bonds that will have a maturity of 15 years, a par value of $1,000, and pay $40 in interest every six months. If both bonds have the same yield (market interest rate), how many new bonds must AAA issue to raise $4,000,000 cash?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Exactly four years ago aaa corporation issued 20-year bonds
Reference No:- TGS02154031

Expected delivery within 24 Hours