Thuddungra Turnips Ltd plans to raise $1.2 million to purchase land and plant more crops of turnips. It will issue bonds with a term to maturity of 15 years. The face value per bond will be $1,000 and the coupon rate will be 8% per annum, paid semi-annually. Similar corporate bonds are trading at a yield to maturity of 9% per annum, compounded semi-annually. It is expected that these new bonds will trade at this rate. If the total cost of the bond issue is 3%, how many bonds will Thuddungra Turnips need to issue?

Select one:

a. 1,348

b. 1,347

c. 1,346

d. 1,345