S

Selling bonds.Rawlings needs to raise

$39,800,000

for its new manufacturing plant in Jamaica. Berkman Investment Bank will sell the bond for a commission of

2.4%.

The market yield is currently

7.2%

on twenty-year zero-coupon bonds. If Rawlings wants to issue a zero-coupon bond, how many bonds will it need to sell to raise the

$39,800,000?

Assume that the bond is semiannual and issued at a par value of

$1,000.

How many bonds will Rawlings need to sell to raise the

$39,800,000?

enter your response here

(Round to the nearest whole number.)