Question 5

Deltona Motors just issued 225,000 zero coupon bonds. These bonds mature in 20 years, have a par value of $1,000, and have a yield to maturity of 7.45 percent. What is the approximate total amount of money the company raised from issuing these bonds? (Assume semi-annual compounding)

Group of answer choices

$48.20 million

$55.14 million

$52.10 million

$162.08 million

$225.00 million