Question: please answer both!! Pennypacker Industries needs to raise $42.00 million by issuing bonds. It plans to issue a 16 year semi-annual pay bond that has

Pennypacker Industries needs to raise $42.00 million by issuing bonds. It plans to issue a 16 year semi-annual pay bond that has a coupon rate of 4.40%. The yield to maturity on the bond is expected to be 4.70%. How many bonds must Pennypacker Industries issue? (Note: Your answer may not be a whole number; in reality, a company would not issue part of a bond.) O 1) 40,673.98 O 2) 41,398.65 3) 42,473.95 04) 43,454.69 O 5) 44,481.79 Page 24 of 40 All else constant, if the yield to maturity of a bond increases, then the value of the bond O 1) increases 2) O 2) decreases O 3) remains the same 04) increases if the maturity is less than one year 5) decreases if the maturity is less than one year Page 25 of 40
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