Consolidated Insurance wants to raise $35 million in order to build a new headquarters. The company will fund this by issuing 10-year bonds with a face value of $1,000 and a coupon rate of 6.3%, paid semiannually. The above table shows the yield to maturity for similar 10-year corporate bonds of different ratings. Which of the following is closest to how many more bonds Consolidated Insurance would have to sell to raise this money if their bonds received an A rating rather than an AA rating?

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C) Calculate the PV of the bond with FV = $1,000, 11ea84dc_f56c_79f8_9a63_7f24617e4468_TB1316_11_TB1316_11 11ea84dc_f56c_79f9_9a63_cbe56fa2f4fa_TB1316_00_TB1316_00 and 11ea84dc_f56c_79fa_9a63_c3a138c76d43_TB1316_00_TB1316_00 11ea84dc_f56c_79fb_9a63_0da403e2c0bd_TB1316_11_TB1316_11 thus, the number of bonds sold if AA 11ea84dc_f56c_79fc_9a63_531aff42747a_TB1316_11_TB1316_11 Calculate the PV of the bond with 11ea84dc_f56c_79fd_9a63_859613164ce1_TB1316_11_TB1316_11 11ea84dc_f56c_a10e_9a63_2158991a946c_TB1316_11_TB1316_11 11ea84dc_f56c_a10f_9a63_4d8235bebfd1_TB1316_11_TB1316_11 and 11ea84dc_f56c_a110_9a63_973b721a48e9_TB1316_11_TB1316_11 11ea84dc_f56c_a111_9a63_0de9affbe52e_TB1316_11_TB1316_11 thus, the number of bonds sold if A 11ea84dc_f56c_a112_9a63_a30df0529907_TB1316_11_TB1316_11 hence, the 11ea84dc_f56c_a113_9a63_377ba16b1604_TB1316_11_TB1316_11

Consolidated Insurance Wants to Raise $35 Million in Order to Build