Now assume that Kits Industries, an AA rated firm is trying to issue 10 year bonds to finance a $14 million project. These bonds are to pay 6% semi-annual coupons and have a face value of $1000. AA rated bonds of similar maturity have a credit spread of 1.85% over treasuries.

(b) At what price do you estimate Kits Industries to be able to issue these bonds for?

c) How many bonds does Kits need to issue to reach its financing goal? (round to the nearest whole number