Moon Software Inc

question 74

Multiple Choice

Moon Software Inc.is planning to issue two types of 25-year,noncallable bonds to raise a total of $6 million,$3 million from each type of bond.First,3,000 bonds with a 10% semiannual coupon will be sold at their $1,000 par value to raise $3,000,000.These are called "par" bonds.Second,Original Issue Discount (OID) bonds,also with a 25-year maturity and a $1,000 par value,will be sold,but these bonds will have a semiannual coupon of only 6.25%.The OID bonds must be offered at below par in order to provide investors with the same effective yield as the par bonds.How many OID bonds must the firm 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
• E)4,676

---

Definitions:

Indwelling Urinary Catheter

A medical device inserted into the bladder through the urethra to allow for continuous, direct urinary drainage for those unable to independently void.

Nursing Assistive Personnel

Healthcare workers who provide basic patient care under the supervision of nursing staff, often assisting with activities of daily living.

Continuous Bladder Irrigation

A medical procedure involving the constant flow of saline into the bladder, typically used after certain types of urological surgery to keep the bladder clear.

Stress Incontinence

The involuntary loss of urine due to pressure or sudden muscle contractions on the bladder, often triggered by physical activity or coughing.