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Calculate how many bonds required

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Question - A company requires 1.5 billion for an investment in a perpetual bonds, rated bonds carry 1% default spread over the long-term treasury bond rate is currently 8%, market yield is 8.5% per annum compounding semi-annually. Calculate how many bonds required and the WACC considering 50% debt and 50 equity mix.

Reference no: EM132923272

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