bonds are paying 8.125% how many do i need to sell to raise $1,ooo,ooo.oo
To calculate how many bonds you need to sell to raise $1,000,000, we need to know the face value of each bond. The face value is the amount that will be repaid to the bondholder at maturity, regardless of the bond's market price.
Once we have the face value, we can calculate the number of bonds using the following equation:
Number of bonds = Amount to raise / (Face value x Bond yield)
In this case, the bond yield is 8.125%, which can be converted to a decimal by dividing it by 100: 8.125% / 100 = 0.08125.
Let's assume the face value of each bond is $1,000. Now we can calculate the number of bonds:
Number of bonds = $1,000,000 / ($1,000 x 0.08125)
Number of bonds = $1,000,000 / $81.25
Number of bonds = 12,345.68
Since you cannot have fractional bonds, you need to round up to the nearest whole number. Therefore, you would need to sell 12,346 bonds to raise $1,000,000.00.