1. Suppose your company needs to raise $10 million to construct a a new manufacturing facility. You are the Treasurer and have recommended to the CFO that the company raise $10 million by selling 30-year, $1,000 par value bonds with a coupon rate of 6% (Risk premium 2% higher than the 30-year US Treasury's current yield).
2. Assuming the same facts as Question 21, however prior to issuance of the new bonds by the company inflation spikes and your investment bank calls to tell you investors will now require an 8% yield on the bonds. The bonds will now sell for a discount to par. The company needs to sell how many bonds in order to raise $10,000,000 [number 1]?