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).
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 4P
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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).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2321a163-39db-4bb5-a5c4-118381950d91%2F1d83a07c-b064-4230-95ca-f5c831d6800c%2F6qlkfus_processed.png&w=3840&q=75)
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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