Chapter $15$

Question $5,$ P$15-10($similar

HW Score: $10\%,1$ of $10$ points

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Points: $0$ of $1$

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Selling bonds. Lunar Vacations needs to raise $$6,500,000$ for its new project $($a golf course on the moon$).$ Astro Investment Bank will sell the bond for a commission of $2\mathrm{.}5\%.$ The market yield is currently $7\mathrm{.}7\%$ on twenty$-$year semiannual bonds. If Lunar wants to issue a $5\mathrm{.}5\%$ semiannual coupon bond, how many bonds will it need to sell to raise the $$6,500,000?$ Assume that all bonds are issued at a par value of $$1,000.$

How many bonds will Lunar need to sell to raise the $$6,500,000?$

$($Round to the nearest whole number.$)$