Company A needs to raise $500,000 capital for a new project. It will issue bonds to meet the capital requirement. Each bond contact has a face value of $1,000. Time to maturity is 10 years. Coupon interest rate is 5% per year. Coupons are paid semiannually. Yield to maturity is 4% per year. What is the number of bond contracts the company must sell to raise $500,000?

Multiple Choice

• 1000

• 438
• 462
• 578