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Canon Corporation recently issued 10–year bonds at a price of Rs. 1,000. These bonds pay Rs....

  1. Canon Corporation recently issued 10–year bonds at a price of Rs. 1,000. These bonds pay Rs. 60 in interest each six months. Their price has remained stable since they were issued, i.e., they still sell for Rs. 1,000. Due to additional financing needs, the firm wishes to issue new bonds that would have a maturity of 10 years, a par value of Rs. 1,000, and pay Rs. 40 in interest every six months. If both bonds have the same yield, how many new bonds must CC issue to raise Rs. 2,000,000 cash?
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