Your company wants to raise $9.0 million by issuing 15-year zero-coupon bonds. If the yield to maturity on the bonds will be 7% (annual compounded APR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is $ (Round to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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Your company wants to raise $9.0 million by issuing 15-year zero-coupon bonds. If the yield to maturity on the bonds will be 7% (annual
compounded APR), what total face value amount of bonds must you issue?
The total face value amount of bonds that you must issue is $
(Round to the nearest cent.)
Transcribed Image Text:Your company wants to raise $9.0 million by issuing 15-year zero-coupon bonds. If the yield to maturity on the bonds will be 7% (annual compounded APR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is $ (Round to the nearest cent.)
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