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USI needs to raise $80 million to fund a new project. The company will sell bonds that have a coupon rate of 5 percent paid
USI needs to raise $80 million to fund a new project. The company will sell bonds that have a coupon rate of 5 percent paid semiannually and that mature in 20 years. The bonds will be sold at an initial YTM of 6 percent and have a par value of $1,000. How many bonds must be sold to raise the necessary funds?
Answers:
a. 83,281
b. 100,000
c. 90,455
d. 80,000
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