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Kintel, Inc., management wants to raise $1 million by issuing six-year zero coupon bonds with a face value of $1,000. The company's investment banker states

Kintel, Inc., management wants to raise $1 million by issuing six-year zero coupon bonds with a face value of $1,000. The company's investment banker states that investors would use an 11.82 percent discount rate to value such bonds. Assume semiannual coupon payments.

At what price would these bonds sell in the marketplace?

How many bonds would the firm have to issue to raise $1 million?

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