E&A Industries is planning an issue of 10-year, $1,000 par value zero coupon bonds to generate cash for a planned acquisition. If the YTM on the bonds will be 6.2% (assume semiannual compounding) and E&A needs to raise $4,653,000 ($4.5 million plus $153,000 in transaction costs), what is the minimum number of bonds that E&A will need to sell?

Answer rating: 100% (QA)

Heres how to find the minimum number of bonds EA needs to sell Convert YTM to semiannual yield The g... View the full answer