How many bonds must be sold to raise the necessary funds


Problem

USI needs to raise $80 million to fund a new project. The company will sell bonds that have a coupon rate of 5 percent paid semiannually and that mature in 20 years. The bonds will be sold at an initial YTM of 6 percent and have a par value of $1,000. How many bonds must be sold to raise the necessary funds?

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Accounting Basics: How many bonds must be sold to raise the necessary funds
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