The MerryWeather Firm Wants to Raise $10 Million to Expand

question 14

Multiple Choice

The MerryWeather Firm wants to raise $10 million to expand its business. To accomplish this,it plans to sell 30-year,$1,000 face value zero-coupon bonds. The bonds will be priced to yield 6%. What is the minimum number of bonds it must sell to raise the $10 million it needs?

• A) 47,411
• B) 52,667
• C) 57,435
• D) 60,000
• E) 117,435