Rawlings needs to raise ?$42,500,000 for its new manufacturing plant in Jamaica. Berkman Investment Bank will sell the bond for a commission of 2.1%. The market yield is currently 7.7% on? twenty-year zero-coupon bonds. If Rawlings wants to issue a? zero-coupon bond, how many bonds will it need to sell to raise the ?$42,500,000?? Assume that the bond is semiannual and issued at a par value of $1,000.
How many bonds will Rawlings need to sell to raise the ?$42,500,000??