Power Communications Inc. is planning two new issues of 25-year bonds. Issue #1 will be sold at its $1,000 par value, and it will have a 10% semiannual coupon. Issue #2 will also have a 25-year maturity and a $1,000 par value, but its semiannual coupon will be only 6.25%. If both bonds are to provide investors with the same yield, how many of the Issue #2 bonds must Power issue to raise $3,000,000? Disregard flotation costs, and round your final answer up to a whole number of bonds.
Paper#32404 | Written in 18-Jul-2015Price : $23