a. Holding everything else constant, as the bond's coupon rate increases, the bond's price 21. Which statement is correct. b. Holding everything else constant, as the bond's coupon rate increases, the bond's price decreases. c. Holding everything else constant, as the bond's yield to maturity increases, the bond's price does not change. d. Holding everything else constant, as the bond's yield to maturity increases, bond price does not change. decreases. e. None is correct. 22. Telex Company needs to raise $20.00 million by issuing bonds. It plans to issue a bond that makes semiannual coupon payments and has 13 years to maturity. The bond has a coupon rate of 5.00%. The yield to maturity on the bond is expected to be 6.90%. How many bonds must be issued? a. 23,139 b. 23,422 c. 23,623 d. 23,849 e. 24,015 23. Blue Star Air issued a bond that makes semiannual coupon payments and has a par value of $1,000. The bond price is $950. It has 12 years to maturity and a coupon rate of 7.78%. What is the effective annual yield? a. 8.63% b. 8.71% c. 8.81% d. 9.19% e. 9.28%