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How many of the oid bonds must cosmic issue

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Reference no: EM132757218

Problem 1: Cosmic Communications Inc. is planning two new issues of 25 years bonds. Bond par will be an original issue discount bond, and it will also have a 25 year maturity and a $1000 par value, but its semi annual coupon will be only 6.25%. if both bonds are to provide investor 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.

Reference no: EM132757218

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