1. GroundPink Inc. needs $2.7 million to expand its business. To accomplish this, the firm plans to sell 20-year, $1,000 face value zero coupon bonds. The bonds will be priced to yield 6.25 percent with interest compounded semiannually. What is the minimum number of bonds the company must sell? Ignore all cost issues.
2. How working capital relates to the company's ability to generate cash flows.
3. Describe how a factor differs from a commercial finance company in terms of accounts receivables financing.