Worldwide Widget Manufacturing, Inc., is doing so well it decides it's time to become an international company.
As the CFO, you're tasked with raising $340 million of new capital to open offices around the world. In researching the matter, you learn that if bonds due in 20 years are used for raising capital, they'll be rated AA and will need to offer a yield of 6.5 percent.
How many bonds will it be necessary to issue to raise the needed capital? What will Worldwide Widget Manufacturing have to make as a semiannual interest rate payment?