A company is considering a zero-coupon bond issue to raise $500 million in order to build a new store. Assuming the company issues individual bonds with a par value of $1,000 and with a maturity of 20 years, approximately how many bonds will the company have to issue in order to raise the $500 million if investors demand a yield to maturity of 10%?                                                                           

Answer rating: 100% (QA)

Step 12 Calculation of number of bonds will the company have to Issue Number of bonds is calcu... View the full answer