Question
The Coneeds$28 million to grow. Theywillsell 20yr, $1,000 face value bonds that have 0% coupon. The expected YTM is6 percent. How many bonds are needed
The Coneeds$28 million to grow. Theywillsell 20yr, $1,000 face value bonds that have 0% coupon. The expected YTM is6 percent. How many bonds are needed to obtain the $28 million? Use annual compounding. Hint: Solve for bond price, and use thisprice per bond to solve for the number of bonds to equal the dollar amount needed.
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Discrete Mathematics and Its Applications
Authors: Kenneth H. Rosen
7th edition
0073383090, 978-0073383095
