Deltona Motors just issued 230,000 zero-coupon bonds. These bonds mature in 18 years, have a par value of $1,000, and have a yield to maturity of 5.9 percent. What is the approximate total amount of money the company raised from issuing these bonds? Assume semiannual compounding.

A. $88.20 million
B. $80.76 million
C. $75.14 million
D. $62.08 million
E. $91.84 million

Answer: B. $80.76 million

Business

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