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krok68 [10]
3 years ago
10

Setrakian Industries needs to raise $83.3 million to fund a new project. The company will sell bonds that have a coupon rate of

5.88 percent paid semiannually and that mature in 30 years. The bonds will be sold at an initial YTM of 6.61 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds
Business
1 answer:
SOVA2 [1]3 years ago
7 0

Answer:

The question is missing the options, which can be found in the attached.

The number of bonds necessary to raise the funds is 46,009

Explanation:

First of all, I calculated the price at which would be issued using the pv formula in excel, which =pv(rate,nper,pmt,fv)

rate is the yield to maturity divided by 2 because it is semi-annual payment

nper is 30 years multiplied by 2

pmt is the semi-annual coupon payment

fv is the $2000 payable on maturity

Find attached.

Download xlsx
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Jon recently stopped a conflict with his girlfriend, Ana, and said to her, "You don't know how to have a disagreement without lo
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A. Meta-conflict

Explanation:

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Newman Labs is considering buying equipment, which would enable the company to obtain a five-year research contract. The special
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Answer:

B

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Increase in net income - 100,000

Annual depreciation charge - 650000/5 =$130,000

Discount rate - 12%=3.605

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3 0
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Davison Toaster Corp. sells its products for $250 per unit. It has the following costs:
dolphi86 [110]

Answer:

Break-even point in units= 1,860

Explanation:

Giving the following information:

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