Rawlings needs to raise $38,800,000 for its new manufacturing plant in Jamaica. Berkman Investment Bank will sell the bond for a commission of 2.3%. The market yield is currently 7.7% on twenty-year zero-coupon bonds. If rawlings wants to issue a zero-coupon bond, how many bonds will it need to sell to raise the $38,800,000? Assume that the bond is semiannual and issued at par value of $1,000.
How many bonds will Rawlings need to sell to raise the $38,800,000?