1. Mayfield Corporation wants to raise $500 million by issuing new bonds. The bonds will have $1,000 par value, 15 years to mature and carry 8% coupon quarterly payments. They are expected to yield 5%. Ignore any commissions data is not available. Also, the firm is required to establish a sinking fund set for annual payments at 3% rate.

1. Determine the total number of bond units that Mayfield should issue.
2. Determine the annual cash disbursements that Mayfield experiences over next 15 years.