Blackstone is planning to issues two types of 25 year non-


Blackstone is planning to issues two types of 25 year non- callable bonds to raise a total of 6 million. first 3000 bonds with a 10% annual coupon rate will be sold at their 1000 par value to raise 3 million . second, original issue discount bond with 25 year maturity and 1000 par value, will be sold but these bonds will have a nominal coupon of 7.55% with annual payments. the oid bonds must be offered at a discount in order to provide investors with same yields as the par bonds. how many oid bonds must the firm issue to raise the other 3 million?

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Financial Management: Blackstone is planning to issues two types of 25 year non-
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