Finding the minimum number of bonds


Problem:

The MerryWeather Firm wants to raise $28 million to expand its business. To accomplish this, the firm plans to sell 20-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6 percent.

Required:

Question: What is the minimum number of bonds the firm must sell to raise the $28 million it needs?

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Accounting Basics: Finding the minimum number of bonds
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