?JRJ Corporation issued 10-year bonds at a price of $1,000. These bonds pay $60 interest every six months. Their price has remained the same since they were issued; that is, the bonds still sell for $1,000. Due to additional financing needs, the firm wishes to issue new bonds that would have a maturity of 10 years and a par value of $1,000 and pay $40 interest every six months. If both bonds have the same yield, how many new bonds must JRJ issue to raise $2,000,000 cash? (Round the value of the bond to two decimal places and the number of bonds to the nearest whole number.)
A. ?2,400
B. 2,596?
C. 3,000?
D. 5,000?
E. ?4,275
Answer: B
You might also like to view...
The primary responsibility for preventing fraud in an organization lies with:
A. the internal audit function. B. the audit committee of the board of directors. C. the external auditor. D. the organization's management.
Because the mode may affect response, mixed-mode forms of data collection are never used in the marketing research industry
Indicate whether the statement is true or false
The proper entry to establish a Petty Cash fund is to:
a. debit Petty Cash and credit Cash. b. debit Petty Cash and credit Accounts Receivable. c. debit Petty Cash Expense and credit Cash. d. debit Cash and credit Petty Cash. e. debit Cash and credit Petty Cash Expense.
To evaluate a prepayment decision, you need to know your investment rate in addition to the amount of interest saved by prepayment
Indicate whether the statement is true or false.