The JG Investment Bank is about to issue a new series of 10 year bonds. The bonds will have a $1000 face value and will be rated AA by a respected Bond Rating Agency. Currently, the yield to maturity on AA rated bonds is $200 basis points above the yield on similar maturity government bonds. The bonds will make annual coupon payments. 

If JG issues 1,500 bonds, how much capital will they raise from the sale? 

Answer rating: 100% (QA)

We are given that the face value of each bond is 1000 JG is issuing 1500 bonds so the total face val... View the full answer