Please assist with the given finance problems.
Assume Sherry Company sells 2,500 of its five-year, $1,000 bonds paying 12 percent interest at 103.
Question 1: How much cash will the company receive from the bond sale?
Question 2: How much cash will the company pay to all of the bondholders each year as interest?
Question 3: Determine the total cash payments the company must make for each $1,000 bond to pay the bondholders their return on investment (interest) and return of their investment.
Question 4: Is the effective (market) interest rate less than, euql to, or greater than 12 percent? How can you determine this?