Country XYZ plans to build a high-speed rail system at an estimated cost of $6 billion. Country XYZ has decided to issue perpetual bonds to finance this plan. Investors demand a 7% return on similar perpetual bonds. If the coupon rate is 6% paid semi-annually and the par value of the bonds is $1000, what is the dollar value of total coupon payments every six months?[HINT: we need to first find how many bonds will be sold]

Answer rating: 100% (QA)

To find the dollar value of total coupon payments every six months we need to calculate the number o... View the full answer