3.1 Your company was in need of R5 million for expansion purposes. You decided to issue semi-annual R1 000 bonds which pay a coupon of 10% for a 15-year period. A year after the bonds were issued, the interest rate in the market increased by 1,5%. Required

a) What was one bond worth one year after it was first issued? [5 Marks]

b) If your company issued 1 500 bonds at par in the first year, how many would you still have to sell at the new present value? [5 Marks