Reinegar Corporation's 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

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The Answer of Reinegar Corporation's 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

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