lling bonds. Lunar Vacations needs to raise $5.700.000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commis miannual coupon bond, how many bonds will it need to sell to raise the $5,700,000? Assume that all bonds are issued at a par value of $1.000. w many bonds will Lunar need to sell to raise the $5,700,000? (Round to the nearest whole number.)
lling bonds. Lunar Vacations needs to raise $5.700.000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commis miannual coupon bond, how many bonds will it need to sell to raise the $5,700,000? Assume that all bonds are issued at a par value of $1.000. w many bonds will Lunar need to sell to raise the $5,700,000? (Round to the nearest whole number.)
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:Selling bonds. Lunar Vacations needs to raise $5,700,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.6%. The market yield is currently 7.2% on twenty-year semiannual bonds. If Lunar wants to issue a 6.1%
semiannual coupon bond, how many bonds will it need to sell to raise the $5,700,000? Assume that all bonds are issued at a par value of $1,000.
How many bonds will Lunar need to sell to raise the $5,700,000?
(Round to the nearest whole number.)
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