Microsoft Corporation needs to raise $100 million to make a strategic acquisition. The company will sell bonds that have a coupon rate of 4.75 percent paid semiannually and that mature in 20 years. The bonds will be sold at an initial YTM of 5.10 percent and have a par value of $1,000. How many bonds must be sold to raise the necessary funds?
Added by Francisco Javier D.
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Given that Microsoft needs to raise $100 million, this will be the total amount that needs to be raised. Show more…
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