The Coneeds$28 million to grow. Theywillsell 20yr, $1,000 face value bonds that have 0% coupon. The expected
Fantastic news! We've Found the answer you've been seeking!
Question:
The Coneeds$28 million to grow. Theywillsell 20yr, $1,000 face value bonds that have 0% coupon. The expected YTM is6 percent. How many bonds are needed to obtain the $28 million? Use annual compounding. Hint: Solve for bond price, and use thisprice per bond to solve for the number of bonds to equal the dollar amount needed.
Related Book For
Discrete Mathematics and Its Applications
ISBN: 978-0073383095
7th edition
Authors: Kenneth H. Rosen
Posted Date: