Final answer:
To calculate the amount raised by Whipple Corporation from bond sales, the present value of the coupon payments and the maturity value based on the yield to maturity would need to be assessed. Unfortunately, not enough information is given to perform this calculation.
Step-by-step explanation:
The student is asking how much money Whipple Corporation raised from the sale of bonds. These bonds have a par value of $2,000, a coupon rate of 6.02 percent paid semiannually, and a yield to maturity (YTM) of 6.46 percent, maturing in 25 years. To determine the amount of money raised, we need to calculate the present value of the bond payments, which includes calculating the present value of the annuity (the semiannual coupon payments) and the present value of the par value that will be paid at the end of the term.
However, the question does not provide enough information to calculate the present value as we would need either the pricing of the bonds or a formula to calculate the present value based on the YTM. Typically, bonds are priced according to their YTM, and this information would define at what percentage of the par value the bonds were sold. Without this or additional details, we cannot provide a definite amount raised from the bond sale.