Question
Jungle Tracks Corporation just issued 230 000 zero-coupon bonds. These bonds mature in 18 years, have a par value of $1000 and have a yield
Jungle Tracks Corporation just issued 230 000 zero-coupon bonds. These bonds mature in 18 years, have a par value of $1000 and have a yield to maturity of 5.9%. What is the approximate total amount of money the company raised from issuing these bonds? Assume semi-annual compounding.
(A)$80.76 million
(B)$91.84 million
(C)$88.20 million
(D)$75.14 million
(E)$62.08 million
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
