Suppose your company needs to raise 10 million to construct


Suppose your company needs to raise $10 million to construct a a new manufacturing facility. You are the Treasurer and have recommended to the CFO that the company raise $10 million by selling 30-year, $1,000 par value bonds with a coupon rate of 6% (Risk premium 2% higher than the 30-year US Treasury's current yield). How many bonds would your company need to issue to fund the capital investment under consideration- [number 1]?

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Financial Accounting: Suppose your company needs to raise 10 million to construct
Reference No:- TGS01668406

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