The MerryWeather Firm wants to raise $20 million to expand its business. To acco
ID: 2689642 • Letter: T
Question
The MerryWeather Firm wants to raise $20 million to expand its business. To accomplish this, the firm plans to sell 15-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6 percent. What is the minimum number of bonds the firm must sell to raise the $20 million it needs? Use annual compounding.
The MerryWeather Firm wants to raise $20 million to expand its business. To accomplish this, the firm plans to sell 15-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6 percent. What is the minimum number of bonds the firm must sell to raise the $20 million it needs? Use annual compounding.
Explanation / Answer
20,000