Sincere Stationery Corporation needs to raise $700,000 to improve its manufacturing plant. It has decided to issue a $1000 par value bond with a 12 percent annual coupon rate and a 14-year maturity. The investors require a 8 percent rate of return. What is the market value of the bonds? What will the net price be if flotation costs are 9% of the market price? How many bonds will the firm have to issue to receive the required funds? What is the firms after tax cost of debt if its average tax rate is 25% and its marginal tax rate is 32%?