Reinegar Corporation Is Planning Two New Issues of 25-Year Bonds

Multiple Choice

Reinegar Corporation 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 Reinegar 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