The App Store Needs to Raise $2

Multiple Choice

The App Store needs to raise $2.8 million for expansion.The firm wants to raise this money by selling 20-year, zero-coupon bonds with a par value of $1,000.The market yield on similar bonds is 6.49 percent.How many bonds must the company sell to raise the money it needs? Assume semiannual compounding.

A) 2,800 bonds
B) 9,450 bonds
C) 11,508 bonds
D) 10,315 bonds
E) 10,044 bonds