On January 1, 2023, Cunningham Corp. is preparing to issue $2 million of five year term bonds (due January 1, 2028) with a 5% stated interest rate and semiannual interest payments. However, it finds the market prices these bonds as a 6% risk, and the market value of the bonds prior to issuance is only $1,915,000. Cunningham is financing a specific investment and requires $2 million at a minimum; the market value of $1,915,000 will not be enough for its intended purpose. To increase the proceeds from the bond issuance, Cunningham might consider any of the following except Group of answer choices Issuing more bonds. Issuing the bonds with a conversion privilege. Increasing the term of the bonds from five years to eight years. Increasing the stated interest rate.

Answer rating: 100% (QA)

Issuing the bonds with a conversion privilege would not ... View the full answer