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#3 LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 21.00 year maturities with a coupon rate of 7.36%

image text in transcribed#3 LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 21.00 year maturities with a coupon rate of 7.36% APR with semi-annual coupon payments (assume a face value of $1,000 on the bond). The current market rate for similar bonds is 8.84% APR. The company hopes to raise $39.50 million with the new issue. Based on the current market rate, what will one of the new bonds sell for?

LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 21.00 year maturities with a coupon rate of 7.36% APR with semi-annual coupon payments (assume a face value of $1,000 on the bond). The current market rate for similar bonds is 8.84% APR. The company hopes to raise $39.50 million with the new issue. Based on the current market rate, what will one of the new bonds sell for? Answer format: Currency: Round to: 2 decimal places

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