Lunar Vacations needs to raise

$5,600,000

for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of

2.2%.

The market yield is currently

7.5%

on twenty-year semiannual bonds. If Lunar wants to issue a

6.1%

semiannual coupon bond, how many bonds will it need to sell to raise the

$5,600,000?

Assume that all bonds are issued at a par value of

$1,000.

Question content area bottom

Part 1

How many bonds will Lunar need to sell to raise the

$5,600,000?