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Selling bonds.Lunar Vacations needs to raise $ 6,500,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond
Selling bonds.Lunar Vacations needs to raise $ 6,500,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.6 % . The market yield is currently 7.4 % on twenty-year semiannual bonds. If Lunar wants to issue a 6.3 % semiannual coupon bond, how many bonds will it need to sell to raise the $ 6,500,000 ? Assume that all bonds are issued at a par value of $ 1,000 .
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