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A company wants to issue 5-year bonds Par value: $1,000 Coupon rate: 10% with annual coupon payment. Market rate of return of similar assets: 12%.

A company wants to issue 5-year bonds Par value: $1,000 Coupon rate: 10% with annual coupon payment. Market rate of return of similar assets: 12%. Find intrinsic PV to determine if you can sell these bonds at par. If no, how much can you sell? b) How many shares of bonds does the company need to sell in order to raise $2,000,000?

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