Cost of debt)Sincere Stationery Corporation needs to raise $460,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with an annual coupon rate of 11.7 percent with interest paid semiannually and a 10-year maturity. Investors require a rate of return of 8.6 percent.

a. Compute the market value of the bonds $.

b.How many bonds will the firm have to issue to receive the needed funds?

c.What is the firm's after-tax cost of debt if the firm's tax rate is 34 percent?