What is the minimum amount of bonds the company will need


A consulting firm needs $100,000 to finance a project, and they wish to issue bonds to cover the cost of the project. They decide to issue $100 face value bonds, with an annual coupon rate of 6% per year paid semi-annually, with a maturity date of 5 years from now. They will sell as many as they have to in order to raise the $100,000. However, a financial advisor tells the company that investors are looking for an annual effective yield of 10% from the investment. What is the minimum amount of bonds the company will need to sell to raise the funds?

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Financial Management: What is the minimum amount of bonds the company will need
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