1. Caspian Sea Drinks needs to raise $41.00 million by issuing bonds. It plans to issue a 15.00 year semi-annual pay bond that has a coupon rate of 5.06%. The yield to maturity on the bond is expected to be 4.74%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.)

2.Caspian Sea is considering raising $38.00 million by issuing preferred stock. They believe the market will use a discount rate of 12.39% to value the preferred stock which will pay a dividend of $3.32. How many shares will they need to issue?