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8 - 8 Spudnuts Co. plans to raise $10,000,000 in funds by issuing zero coupon $1,000 par value bonds with a 25-year maturity. Spudnuts Co.

8 - 8 Spudnuts Co. plans to raise $10,000,000 in funds by issuing zero coupon $1,000 par value bonds with a 25-year maturity. Spudnuts Co. is able to issue these bonds at an after tax cost of debt of 12%. To the nearest whole number, how many bonds must Spudnuts Co. issue?

Select one: a. 10,000 b. 42,919 c. 125,837 d. 170,000

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