Northern warehouses wants to raise 10 million to expand its


Northern Warehouses wants to raise $10 million to expand its business. To accomplish this, it plans to sell 35-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6 percent. What is the minimum number of bonds it must sell to raise the $10 million it needs?

a. 66,588

b. 60,534

c. 82,714

d. 158,356

e. 79,178

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Financial Management: Northern warehouses wants to raise 10 million to expand its
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