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30. LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will mature in 20 years and have a coupon rate of 8.50% with semi-annual coupon payments (assume a par value of $1,000 on the bond). The current yield-to-maturity for similar bonds is 9.80%. The company hopes to raise $18 million with the new issue. To raise the debt, how many bonds must the company issue? (Round to the nearest whole number).

30. LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will mature in 20 years and have a coupon rate of 8.50% with semi-annual coupon payments (assume a par value of $1,000 on the bond). The current yield-to-maturity for similar bonds is 9.80%. The company hopes to raise $18 million with the new issue. To raise the debt, how many bonds must the company issue? (Round to the nearest whole number).

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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30. LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will mature in 20 years and have a coupon rate of 8.50% with semi-annual coupon payments (assume a par value of $1,000 on the bond). The current yield-to-maturity for similar bonds is 9.80%. The company hopes to raise $18 million with the new issue. To raise the debt, how many bonds must the company issue? (Round to the nearest whole number).
Transcribed Image Text:30. LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will mature in 20 years and have a coupon rate of 8.50% with semi-annual coupon payments (assume a par value of $1,000 on the bond). The current yield-to-maturity for similar bonds is 9.80%. The company hopes to raise $18 million with the new issue. To raise the debt, how many bonds must the company issue? (Round to the nearest whole number).
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