Ch15 q7

Selling bonds.Lunar Vacations needs to raise $6,400,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.3%. The market yield is currently 7.6% on twenty-year semiannual bonds. If Lunar wants to issue a 5.7% semiannual coupon bond, how many bonds will it need to sell to raise the $6,400,000? Assume that all bonds are issued at a par value of $1,000.

How many bonds will Lunar need to sell to raise the $6,400,000?

(Round to the nearest whole number.)