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A company wants to raise $2 million by issuing 15 -year zero coupon bonds with a face value of $1,000. Their investment banker informs them
A company wants to raise $2 million by issuing 15 -year zero coupon bonds with a face value of $1,000. Their investment banker informs them that investors would use a 3.5 ph percent discount rate on such bonds. At what price would these bonds sell in the market place assuming semliannual compounding? How many bonds would the firm have to issue to ralse $2 million
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