A company needs to raise $10 million to finance an investment. How many bonds would the firm need to sell (ignoring transaction costs)? Assume the company decides to issue 10-year maturity bonds with a 5% coupon rate, paying coupons semi-annually. The yield to maturity is currently 4%.
My finance teacher gave us this problem and never went over it. Does anyone know the formula or what to do to find the answer to this problem.