Excel Hydro Inc. has just issued dividends at $2 per share. There are 500,000 shares outstanding. The recently released Income statement shows net earnings of $1200,000. Dividends will grow at the rate of 10% for the next four years. The required rate of return is 12%.

1. What is the minimum number of bonds they must sell to raise the $6.2 million they need?

2. What are the deposits worth in today's dollars?