How many bonds will nfm have to issue

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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

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