Peter is renovating his company's headquarters. He recently depleted all his cash reserves on strategic cosmetic upgrades, so he needs to raise additional capital in order to finance long-delayed maintenance CAPEX on his company's roof. He decides to raise this capital through the issuance of 30-year, zero-coupon bonds. The prevailing effective yield-to-maturity on such bonds is 1.5% semi-annually. If Peter issues 10,000 bonds, how much total capital can he raise?

Answer rating: 100% (QA)

To calculate the total capital Peter can raise through the issuance of 30year zerocoupon bonds we ca... View the full answer