How many of the oid bonds must cosmic issue to raise

Reference no: EM13289458

Cosmic Communications Inc. is planning two new issues of 25-year bonds. Bond Par will be sold at its $1,000 par value, and it will have a 10% semiannual coupon. Bond OID will be an Original Issue Discount bond, and it will also have a 25-year maturity and a $1,000 par value, but its semiannual coupon will be only 6.25%. If both bonds are to provide investors with the same effective yield, how many of the OID bonds must Cosmic 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

Reference no: EM13289458

Questions Cloud

Find the maximum height the arrow will reach : An arrow is launched from a height of 1.21 m above the ground with an initial velocity of 48.3 m/s, What will be the maximum height the arrow will reach during its trajectory

Create a formula using the iferror fuction : Create a formula using the IFERROR fuction in the selected cell that will return the value "INVALID" for the equation G10*F10/E10 if there is an error in the equation.

Find high pass unity gain butterworth filter with frequency : using 25 nF capacitors and ideal op-amps, design a high pass unity gain butterworth filter with a cut off fq of 10 kHz and a gain of at least -25dB at 5kHz.

Calculate the amount of stored charge : In open heart surgery a much smaller amount of energy will defibrillate the heart. Find the amount of stored charge

How many of the oid bonds must cosmic issue to raise : If both bonds are to provide investors with the same effective yield, how many of the OID bonds must Cosmic issue to raise $3,000,000? Disregard flotation costs, and round your final answer up to a whole number of bonds.

Calculate the value of both resistors of a generator : There is a generator with internal resistance, 50 Ohms. A matching load of 50 Ohms is connected for max power to be extracted. There exists 2 other resistors which do not equal to 50 Ohms; one resistor is small, one resistor is big.

Evaluate the focal length of the mirror : A small statue has a height of 3.8 cm and is placed in front of a concave mirror. evaluate the focal length of the mirror

Calculate the value of coupling coefficient k of coils : 2 coils are magnetically coupled. There are 2 possible conductance values when the coils are in series: 25 H and 23H. Calculate the value of coupling coefficient, K

What is the taxable equivalent bond yield : Nick is in the 35% tax bracket and he holds a municipal bond that pays a tax-exempt interest rate of 5%. What is the taxable equivalent bond yield?

User Account

All Pages