How many bonds will nfm have to issue

Reference no: EM132009822

Question: Nebraska Furniture Mart (NFM) is considering a zero-coupon bond issue to raise $2 billion in order to build the new NFM store to be located in Dallas, TX. Assuming NFM issues individual bonds with a par value of $1,000 and with a maturity of 25 years, approximately how many bonds will NFM have to issue in order to raise the $2 billion if investors demand a yield to maturity of 12%? (Assume semiannual compounding).

Reference no: EM132009822

Questions Cloud

A job description of an entry level probation officer : Go to any probation department or parole department website and pull a job description of an entry level probation officer or parole officer.

Plot the feasible set or the opportunity set : Suppose that mutual fund A has an expected return of 10% and a standard deviation of 15%. Mutual fund B has an expected return of 15% and a standard deviation.

What will be the company stock price the stock split : The company is considering a 3 for 2 stock split. What will be the company’s stock price following the stock split?

Particularly unsocial and aggressive cat : Betty whose home was destroyed by a particularly unsocial and aggressive cat. According to the text, why should Cindy distrust this persuasive appeal?

How many bonds will nfm have to issue : Nebraska Furniture Mart (NFM) is considering a zero-coupon bond issue to raise $2 billion in order to build the new NFM store to be located in Dallas, TX.

What is market price of this stock : What is market price of this stock if the market rate of return is 16 percent?

What this means in relation to the provider : Cross-cultural helping is described as "experiential, freewheeling, and bilateral." what this means in relation to the provider and the client's experience.

Correlation between eating cereal and weight : Earlier in this lesson, we read about research suggesting that there is a correlation between eating cereal and weight.

Analyze the types of digital criminals and hackers : Analyze the types of digital criminals and hackers. Summarize white-collar crimes and criminal tools.

User Account

All Pages