Deltona Motors just issued 225,000 zero coupon bonds. These bonds mature in 20 years, have a par value of $1,000, and have a yield to maturity of 7.45 percent. What is the approximate total amount of money the company raised from issuing these bonds? (Assume semi-annual compounding) $48.20 million $55.14 million $52.10 million $162.08 million O $225.00 million
Deltona Motors just issued 225,000 zero coupon bonds. These bonds mature in 20 years, have a par value of $1,000, and have a yield to maturity of 7.45 percent. What is the approximate total amount of money the company raised from issuing these bonds? (Assume semi-annual compounding) $48.20 million $55.14 million $52.10 million $162.08 million O $225.00 million
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
Problem 1PS
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Transcribed Image Text:Deltona Motors just issued 225,000 zero coupon bonds. These bonds mature in 20 years, have a par
value of $1,000, and have a yield to maturity of 7.45 percent. What is the approximate total amount of
money the company raised from issuing these bonds? (Assume semi-annual compounding)
$48.20 million
$55.14 million
$52.10 million
$162.08 million
O $225.00 million
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