Tesla is considering issuing 7-year corporate bonds. The face value is $1,000 and coupon rate is 7% paid semi-annually. If investors' annual required return rate on similar corporate bonds is 9%, how many bonds does Tesla need to issue in order to raise $300,000,000 (assuming no fees or any issuing costs). (10 points) HINT: we need to find bond price first. Bond price times number of bonds equals total financing.

Answer rating: 100% (QA)

To find the price of the bond we can use the formula for the price of a bond Bo... View the full answer