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, 11eaabab_c0ae_7f4a_b90e_e39aaebbe265_TB5536_11 11eaabab_c0ae_7f4b_b90e_730bacbadfc7_TB5536_11 and 11eaabab_c0ae_7f4c_b90e_298912057073_TB5536_11 11eaabab_c0ae_a65d_b90e_e5bcf802a952_TB5536_11 thus, the number of bonds sold if AA 11eaabab_c0ae_a65e_b90e_b579f0a7ed9a_TB5536_11 Calculate the PV of the bond with 11eaabab_c0ae_a65f_b90e_f519288567a5_TB5536_11 11eaabab_c0ae_cd70_b90e_95f8a1eaf008_TB5536_11 11eaabab_c0ae_cd71_b90e_eda7e1b946e5_TB5536_11 and 11eaabab_c0ae_cd72_b90e_132489eed4fd_TB5536_11 11eaabab_c0ae_cd73_b90e_453a1e9f4f43_TB5536_11 thus, the number of bonds sold if A 11eaabab_c0ae_cd74_b90e_5dd632c52ed0_TB5536_11 hence, the 11eaabab_c0ae_f485_b90e_15029f5b2710_TB5536_11

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