Your company wants to raise $7.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 4% (annual compounded APR), what total face value amount of bonds must you issue?The total face value amount of bonds that you must issue is $(Round to the nearest cent.)

Zero-coupon bonds refers to a type of bond that bears zero coupon payments i.e. provides no interest…

Answered: The total face value amount of bonds…

Business

Finance

The total face value amount of bonds that you must issue is $ (Round to the nearest cent.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Your company wants to raise $7.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 4% (annual compounded APR), what total face value amount of bonds must you issue?
The total face value amount of bonds that you must issue is $
(Round to the nearest cent.)

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