How many bonds must the firm issues

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Question

HMK Enterprises would like to raise $10 million to invest in capital expenditures.

The company plans to issue two-year bonds with a face value of $1000 and a coupon rate of 6.5% (annual payments). The YTM for two-year (annual-payments) coupon corporate bonds for HMK is 6.3%.

How many bonds must the firm issues to raise $10 million?

Reference no: EM133629964

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