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Reinegar Corporation is planning two new issues of 25 year bonds. Bond Par will be sold at its $1,000 parvalue, and it will have a
Reinegar Corporation is planning two new issues of 25 year bonds. Bond Par will be sold at its $1,000 parvalue, and it will have a 10% semianmul coupon. Bond OID will be an Original Issue Discount bond, and it will also have a 25-year maturity and a $1,000 par value, but its semiannul coupon will be only 3.25%. If both bonds are to provide investors with the same effective yield, how many of the OID bonds must Reinegar issue to raise $3,000,000 ? Disregard flotation costs, and round your final answer up to a whole number of bonds. Select the correct answer. a. 7,816 b. 7,812 C. 7,808 d. 7,820 e. 7,804
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