Filkins Farm Equipment needs to raise$4.5million for expansion, and it expects that five-year zero coupon bonds can

Question:

Filkins Farm Equipment needs to raise$4.5million for expansion, and it expects that five-year zero bonds can be sold at a price of $567.44 for each $1,000 bond.
a. How many $1,000 par value, zero bonds would Filkins have to sell to raise the needed $4.5 million?
b. What will be the burden of this bond issue on the future cash flows generated by Filkins? What will be the annual debt service costs? Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...