Power Fabrication wants to expand and build two more fabrication shops in Iowa. They were contemplating borrowing money from the bank but did not want to leverage their organization. Instead, they decided to issue bonds to raise the $14,000,000 capital they need.

They decide to issue bonds with a Face Value of $10,000.

The bond has a coupon rate of 4.5%

The bond matures 7 years from today.

1. How many bonds will they need to sell to make the capital they need?__________
2. Power Fabrication will end up paying each bond holder $________________.00 per year for _______ years.
3. The total interest received by a bond holder when the bond matures will be ___________.00.
4. Not including the interest from above, when the bond matures, each bond holder will receive $____________.00.