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A company wants to raise $600,000 by issuing zero coupon bonds. The bonds have a face value of $1,000 and will mature in 8 years.

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A company wants to raise $600,000 by issuing zero coupon bonds. The bonds have a face value of $1,000 and will mature in 8 years. The issue price gives potential investors a yield to maturity of 3% p.a. (nominal). Assume comparable-risk coupon bonds normally pay semi-annual coupons Calculate the issue price per bond. (Round yourfanswer to 2 decimal places. Do not include the $ symbol. Do not use comma separators. E.g. 1234.56) (2 marks) How many bonds should the company issue to raise enough money? (Do not include unit. Do not use comma separators.) (1 mark)

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