Sincere Stationery Corporation needs to raise $500,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with a 12 percent annual coupon rate and a 10 year maturity. If floatation costs are 10.5 percent of the market price, how many bonds will the firm have to issue to receive the needed funds? Give an example of why a company like Sincere Stationery Corporation would issue debt at 12 percent interest in todays interest rate environment?

Please show full work with equation and each step to solve, thank you.