Cosmic Communications Inc

question 97

Multiple Choice

Cosmic Communications Inc.is planning two new issues of 25-year bonds.Bond Par will be sold at its $1,000 par value,and it will have a 10% semiannual coupon.Bond OID will be an original issue discount bond,and it 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 effective yield,how many of the OID bonds must Cosmic issue to raise $3,000,000? Disregard flotation costs,and round your final answer up to a whole number of bonds.

• A)4,228
• B)4,337
• C)4,448
• D)4,562

---

Definitions:

Consumer Electronics

Electronic devices intended for everyday use by individuals, such as smartphones, televisions, and laptops.

Prestige Products

Items that are perceived as luxurious and of high quality, often associated with social status.

Shopping Products

Goods that consumers purchase after comparing quality, price, and style from several sellers, implying a more deliberate decision-making and selection process.

Unsought Product

A type of product that consumers typically do not think about buying or do not know exists until they see it or need it.