How many shares of new bonds must jrj issue

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Question - JRJ Corporation recently issued 10-year bonds at a price of $1,000. These bonds pay $60 coupon every six months. Their price has remained stable since they were issued, i.e., they 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, a par value of $1,000, and pay $40 coupon every six months. If both bonds have the same yield to maturity, approximately how many shares of new bonds must JRJ issue to raise $2,000,000 cash?

A) 2,400

B) 2,596

C) 3,050

D) 5,000

E) 4,275

F) None of the above

Reference no: EM132984563

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