1) Exactly five years ago, WSGD Holdings issued 20-year bonds with a $1,000 face value. These...

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Finance

1) Exactly five years ago, WSGD Holdings issued20-year bonds with a $1,000 face value. These bonds pay $55 incoupon payment every six months. The bonds currently sell for $950.Due to additional financing needs, the firm has decided to issuenew bonds that will have a maturity of 20 years, a par value of$1,000, and pay 4% coupon every six months. If both bonds have thesame yield, how many new bonds must WSGD Holdings issue to raise$10,000,000 cash?

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1) Exactly five years ago, WSGD Holdings issued20-year bonds with a $1,000 face value. These bonds pay $55 incoupon payment every six months. The bonds currently sell for $950.Due to additional financing needs, the firm has decided to issuenew bonds that will have a maturity of 20 years, a par value of$1,000, and pay 4% coupon every six months. If both bonds have thesame yield, how many new bonds must WSGD Holdings issue to raise$10,000,000 cash?

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