Find what is the yield to maturity on the bonds

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Filkins Farm Equipment needs to raise $4.5 million for expansion. and it Expects that five year zero coupon bonds can be sold at a price of $567.44 for each $1.000 bond

a. how many 1000 par value zero coupon bonds would Filkins have to sell to raise the needed 4.5 million

b. what will be the burden of this bond issue on the future cash flows generated by filkins? what will be the annual debt service costs?

c. what is the yield to maturity on the bonds?

 

Reference no: EM13295821

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