Impact of Two Bond Alternatives Yung Chong Company wants to issue 100 bonds, $1,000 face value, in January. The bonds will have a ten-year life and pay interest annually. The market rate of interest on January 1 will be 9%. Yung Chong is considering two alternative bond issues: (a) bonds with a face rate of 8% and (b) bonds with a face rate of 10%. Required: 1. If the company issues bonds with a face rate of 8% when the market rate is 9%, the bonds will be issued at a Thus, the company "save money" by issuing bonds at a 1. The real interest cost the company will incur is the 2. If the company issues bonds with a face rate of 10% when the market rate is 9%, the bonds will be issued at a the bonds, but then the company has to pay the This will make the company incur a real interest cost of bonds at 10% . The company will receive . Thus, the company the par/face value of by issuing