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A company wishes to raise $10,000,000 through the sale of a zero-coupon bond issue, in which the bonds will have a maturity of 12 years
A company wishes to raise $10,000,000 through the sale of a zero-coupon bond issue, in which the bonds will have a maturity of 12 years and a face value of $15,000 per bond. If the yield on these bonds are 6.75%, how many of these bonds will the company have to sell today, to raise the full $10 million? (Round up to the next whole number).
A. 1,460
B. 712
C. 667
D. 6,850
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