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Business, 06.08.2019 01:20 londonval

Rawlings needs to raise $36,500,000 for its new manufacturing plant in jamaica. berkman investment bank will sell the bond for a commission of 2.7 %. the market yield is currently 7.1 % 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 $36,500,000? assume that the bond is semiannual and issued at a par value of $ 1,000. how many bonds will rawlings need to sell to raise the $36,500,000?

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