How many bonds must the company issue

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Reference no: EM131871293

LBJ Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 21.00 year maturities with a coupon rate of 7.34% APR with semi-annual coupon payments (assume a face value of $1,000 on the bond).

The current market rate for similar bonds is 8.88% APR. The company hopes to raise $32.50 million with the new issue.

To raise the debt, how many bonds must the company issue? (round to two decimal places)

Reference no: EM131871293

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