In this class, we have not gone over required rate of return or implicit value yet. So, please, explain how you solve this and show work.

Jorn Co is in need of approximately $2,000,000 to finance the purchasing of equipment and inventory for a business expansion. They are trying to decide between the three following scenarios: Option 1: Issuing $3,000,000 in 10-year bonds with an annual 4% coupon rate. Similar bonds have a 9% market rate. Option 2: Issuing $1,500,000 in 10-year bonds with an annual 13% coupon rate. Similar bonds have an 8% market rate. Option 3: Issuing a 10-year $5,000,000 zero-interest-bearing note with an implicit rate of 9.5%. Part A. For each scenario, prepare the amortization table for the first 2 full years. Part B. Besides the difference in market rates, what else should Jorn take into consideration when making their decision