Selling bonds. Lunar Vacations needs to raise $6,200,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.4%. The market yield is currently 7.3% on twenty-year semiannual bonds. If Lunar wants to issue a 6.3% semiannual coupon bond, how many bonds will it need to sell to raise the $6,200,000? Assume that all bonds are issued at a par value of $1,000.

Answer rating: 100% (QA)

To determine the number of bonds Lunar Vacations needs to sell to raise 6200000 we can use the formu... View the full answer