Question: Lunar Vacations needs to raise 6 000 000 for its new project
Lunar Vacations needs to raise $6,000,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.5%. The market is currently yielding 7.5% on twenty-year semiannual bonds. If Lunar wants to issue a 6% semiannual coupon bond, how many bonds will it need to sell to raise the $6,000,000?
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