POP Inc wants to raise $100.000 by issuing 20-year bonds. It may issue bonds (face value of $1.000 each and paying semi-annual coupons) with either 10% or 15% coupon rate. Assume the yield to maturity is 12% no matter which coupon rate POP chooses. Calculate the prices for both bonds and the number of bonds POP need to issue to the required capital?

POP Inc wants to raise $100,000 by issuing 20 -year bonds. It may issue bonds (face value of $1.000 each and paying semi-annual coupons) with either 10% or 15% coupon rate. Assume the yield to maturity is 12% no matter which coupon rate POP chooses. Calculate the prices for both bonds and the number of bonds POP need to issue to the required capital