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Lunar Vacations need to raise $5,900,000 for its new project (a golf course on the moon). Astro investment bank will sell the bond for a
Lunar Vacations need to raise $5,900,000 for its new project (a golf course on the moon). Astro investment bank will sell the bond for a commission of 2.7%. The market yield is currently 7.2% on twenty year semiannual bonds. If lunar wants to issue a 5.5% semiannual coupon bond, how many bonds will it need to sell to raise the $5,900,000? assume that all bonds are issued at a par value of $1,000.
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